In today’s culturally diverse, politically correct, workplace environment, it appears as if no one other than white males are immune to discrimination. Lawsuits against employers alleging discrimination have been filed from all of the following: gays and lesbians; women; the aged; the pregnant; the handicapped; blacks and other minorities; the obese; parents. Effects on employees consist of things such as embarrassment, humiliation, physical and emotional abuse, loss of work and pay, and a variety of other deleterious effects. For employers, there is a need for discrimination liability insurance, the need to protect public image, the institution of anti-discrimination policy, the sponsoring of anti-discrimination and cultural diversity seminars, and a host of other effects. However, more so than on employees, the financial effects on employers can be devastating when employees alleging discrimination take those allegations to court:
Snowballing legal costs. Legal expenses have risen 30 percent in the past five years.
Time lost in court. A clogged judicial system wastes management time and produces victims among winners and losers alike.
Unfavorable publicity. No company wants to be labeled as having a ‘systematic culture of sexual abuse and discrimination.’
While employees and employers alike suffer deleterious effects from workplace discrimination, it is often the employer who suffers the worst financially. One reason for this is a tendency among juries to favor employees who appear as the discriminated against David seeking justice against the corporate Goliath. Another reason is the rapidly growing number of lawsuits that have been filed alleging discrimination in the workplace over the past decade. One significant effect of this has been that more firms are seeking Employment Practices Liability Insurance (EPLI) “Because the number of lawsuits claiming sexual harassment has more than doubled since 199...