Posted in Employment Law
By Tony Liu, Founder and Principal Business Trial Attorney
In Summary:
If someone you’ve disciplined for discrimination claims they were wrongfully targeted, they might file a reverse discrimination lawsuit. Both employees and accused employees can sue your business under federal and California law. Proper documentation, internal policies, proactive training, and employment practices liability insurance (EPLI) can help protect you.
What to Know When Either Side in an Employment Discrimination Claim May Sue Your Business
Why Even the Accused May Sue You
- Reverse discrimination lawsuits: If you discipline or terminate someone after investigating their discriminatory behavior, they might claim retaliation or reverse discrimination—even if they were the alleged discriminator.
- Employers and employees alike are held to anti‑discrimination laws that protect everyone. According to federal definitions, discrimination includes protected characteristics like age, race, sex, sexual orientation, gender identity, disability, religion, and more.
Know the Legal Framework
Federal Protections
Under Title VII, employers may not discriminate based on protected categories; this applies to everyone in the workplace: employees, applicants, and even accused wrongdoers.
California’s Laws
California’s FEHA (enforced by the CRD, formerly DFEH) extends broad workplace protections, including anti‑discrimination and retaliation coverage for supervisors and employees alike. The Unruh Act also applies more broadly to business discrimination practices.
Steps to Reduce Lawsuit Risk
- Document Everything
Keep detailed records—dates, communications, investigations, performance reviews—to support your decisions. - Maintain Fair Procedures
Apply policies consistently, investigate thoroughly, and give employees a chance to explain before acting. - Train and Inform Staff
Prevent discrimination by training everyone on workplace equity and expectations. - Know the Filing Process in California
Claims typically start with the CRD, and you must receive a “right-to‑sue” letter before a lawsuit can follow. - Invest in Employment Practices Liability Insurance (EPLI)
EPLI helps protect against the costs of defending discrimination or retaliation claims, including reverse discrimination.
Potential Fallout of Discrimination Lawsuits
- Financial loss: Even small settlements can average $75,000; jury awards can reach $200,000+.
- Reputational damage: Lawsuits affect public perception and employee morale.
- Business disruption: Legal battles distract leadership and drain resources.
Frequently Asked Questions
1. What is a reverse discrimination lawsuit?
It’s when someone deemed the discriminator claims unfair treatment or discrimination against them following discipline or termination.
2. Can employees sue in California before CRD mediation?
Typically, no. You must receive a “right-to‑sue” notice from the CRD before filing a lawsuit.
3. How long do I have to respond to a discrimination charge?
California law gives up to three years from the act for CRD filings; federal EEOC timelines often require you to wait for their notice first.
Shield Your Business Before the Lawsuit Hits
Discrimination claims, whether from employees, applicants, or even accused individuals, pose a serious legal and financial risk. To safeguard your business, document decisions, maintain fair processes, leverage insurance, and stay informed.
If you’re unsure whether your policies meet compliance or need EPLI guidance, contact our legal team today for a risk assessment and help fortifying your defenses.
Related Insights on Employment Law and Business Risk:
– What Should Be In My Employment Contract? (11 Essentials for Employers)
– Your ‘Ladies’ Night’ May Get You A Date With A Lawsuit
