Compensation Solutions Blog
Human Resources Outsourcing (HRO – PEO – ASO – Payroll – Agency)

Discrimination Claims Up in 2009

As the recession gets deeper, discrimination claims go up.  So says the Equal Employment Opportunity Commission (EEOC), which recently released statistics for 2009.  93,277claims were filed last year, a 23% increase since 2006.  Race discrimination has always been the most frequently filed charge, but for the first time retaliation claims took a slight lead, leaving race discrimination a close second.  These are followed by sex/gender, age, disability, national origin and religious discrimination in that order.

How do you prevent discrimination claims?  The answer is simple:  training.  Employers must invest the time and money in diversity and sensitivity training for their employees.  Training is especially important because statistics current workforce trends indicate that by the year 2050, half of the workforce will be composed of people of color, with Hispanics leading the way.

If you as an employer think the cost of training outweighs the benefits, consider this:  from the years 2000-2007, jury verdicts averaged $200,000.  The range in verdicts during this time frame was $1-$53,885,000; from 2009 to mid-2009, the range was up to $1.9MM.  Including amounts paid out in settlements and alternative dispute resolution increases these numbers exponentially.

There are legal advantages to training your employees.  When faced with a discrimination charge, courts will look at the steps you as an employer have taken to prevent such incidents from occurring.  Establishing an institutionalizing a training program will enable you to establish an affirmative defense, and could also protect you against, or at least mitigate, punitive damages.