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Protecting yourself from retaliation claims

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Retaliation is the act of firing, demoting, harassing, or otherwise “getting even” with a person, who complained, testified in an investigation, or appeared in court. The Equal Employment Opportunities Commissions forbids retaliation when hiring, firing, paying, assigning work, laying off, promoting, training, or giving employee benefits.

Piercing the Corporate Veil

Piercing the corporate veil is not only a theory. It is a practice. Harvard Law school lists the three justifications for piercing the corporate veil:

• To bring the corporation into compliance with statutes
• To remedy what appears to be fraudulent or misconduct
• To satisfy bankruptcy court trustees

Unlawful Termination

If you must terminate or lay off an employee, just cause is:

• Numerous absences or repeated tardiness
• Criminal behavior
• Frequently disrupting the work environment
• Poor performance
• Insubordination

Indemnity Insurance

Professional indemnity insurance is freedom from professional liability, a global and national product, which protects professionals from incurring losses due to a breach of their duties. Indemnity clauses concern contractual indemnity, as opposed to common law indemnity.

Indemnity Clause

The indemnity clause in a business contract obligates a party to pay for expenses incurred in a business transaction. Employment lawyers Goldman and Ehrlich specialize in a dual perspectives: advising and representing businesses, local, state, and the federal government; and employees. Employees, who hastily signed:

• an unreasonable employment contract
• an overly broad non-compete agreement
• a contract to work where their legal rights are violated

Retaliation Claims

Your business’ best defense against retaliation claims is an understanding of the risk involved during a business transaction. Typical risks in employment contracts are:

• Personal injury
• Property damage
• Monetary loss
• Intellectual property rights violated
• Attorneys’ fees and costs

Employment Contract

Your employment contract should state the limits of the employer’s professional indemnity insurance. Indemnity insurance does not cover:

• Property damage or injury
• Damage under warranty
• Employer’s liability
• Insolvency
• Pollution
• Acts of war or terrorism

Employee’s Claim

Employee retaliation claims are not just formalities. If your employee has filed a retaliation claim, you will be asked to justify the unlawful termination, or any and all instances when the employee alleges retaliation. If you conduct business in more than one state or country, the proceeding or investigation will occur in the jurisdiction where the alleged retaliation occurred.

If you need an employment law attorney to advise or defend your business against an employee’s claim of retaliation contact us, Goldman and Ehrlich advises businesses when termination is proper. Goldman and Ehrlich defends clients within government agencies, in agency hearings, and in local, state, and federal court.