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The impact of false allegations of discrimination

On Behalf of | Feb 2, 2021 | Business Law

Whether you run a large corporation or a smaller firm, discrimination charges pose a serious threat to multiple facets of your company if they arise. In fact, the U.S. Equal Employment Opportunity Commission reports that employers face damages for a number of reasons, such as a victim’s emotional challenges and out-of-pocket costs arising from discriminatory acts. Unfortunately, some employers face these penalties even though no wrongdoing occurred.

If you are facing false allegations of discrimination, pore over the details of the case and make sure you are ready to protect your business’ future by handling the charges appropriately.

Compensatory damages, punitive damages and company’s size

The EEOC states that there are limits with respect to the amount of damages a victim is able to recover, based on the company’s size. For example, firms that employ between 15 and 100 employees sometimes face up to $50,000 in damages when discrimination cases surface. On the other hand, companies that employ over 500 staff members sometimes face up to $300,000 in compensatory and punitive damages. Sometimes, courts award punitive damages upon determination that particularly malicious acts of discrimination took place.

Preparing for a discrimination case

From revenge to seeking a financial windfall, workers file false discrimination complaints for different reasons. Discrimination cases often involve heated emotions and threaten a business’ reputation. However, you need to stay positive and prepare. Gather as much evidence as you are able to, from eyewitness reports to video footage and digital correspondence (such as emails, text messages and online posts). Develop a clear understanding of your rights and strategies to prove the claim(s) baseless.


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