Workers’ Comp Retaliation Can Cost You
Demonstrating the dangers of workers’ comp retaliation, an Iowa court upheld a $1 million verdict awarded to an employee who was disciplined and then terminated by her employer after she filed a workers’ comp claim.
The court concluded that there was enough evidence to support the determination that the employee’s workers’ comp claim was the determining factor in the decision by the company (Graham Manufacturing Corp.) to terminate her. The verdict included $25,000 for emotional distress, $50,000 back pay, $150,000 front pay and $775,000 in punitive damages.
Among other things, the court found that the timing of the warnings and termination was highly suspect.
The employee sustained a work-related back injury in April 2002 and was put on light duty by her physician. A few days later, her supervisor issued her a performance warning.
The employee’s doctor issued more restrictive work restrictions in June 2002. A few days later, the employee’s supervisor issued her a second performance warning.
The employee’s doctor then notified the company’s insurer that the employee had a herniated disc and nerve impingement. A few days later, the employee’s supervisor sent HR an email suggesting that the employee be assigned to a less-than-desirable restroom cleaning job or be moved to her prior lower-paying job. The supervisor also held a meeting to discuss his department’s workers’ comp costs.
The employee reluctantly agreed to go back to her lower-paying job. Her new supervisor demonstrated his disdain for her work restrictions by allegedly picking up the chair ordered by her doctor for rest breaks and throwing it across the room.
After the employee hired an attorney to help her pursue workers’ comp benefits, the second supervisor gave her a third performance warning. The employee then complained to HR. Two weeks later, the supervisor fired the employee.
In its decision, the court pointed to a number of factors supporting the verdict, particularly (1) the suspicious timing of the warnings and termination, (2) the first supervisor’s email to HR and workers’ comp cost-cutting meeting and (3) hostility expressed by the second supervisor.
The lessons? Educate managers on the perils of retaliating in any way against employees who file workers’ comp claims. Help them understand that communications — whether emails or meetings — can be used against them as evidence. Closely scrutinize discipline and termination decisions to ensure that they are fair and in no way tied to the filing of a workers’ comp claim.
