The Nonprofit
A nonprofit focused on childcare.
The Situation
Four employees claimed they had been wrongfully terminated for complaining about unpaid wages. Legal discovery revealed that the unpaid wage claims had some merit and the terminations based on performance problems would be difficult to establish.
The Resolution
While the four claims were eventually settled, legal defense costs to move the litigation to the point where it could be resolved were incurred. Retaliation claims are currently the most significant employee practice liability exposure to employers, for both nonprofit and for-profit organizations.
From the Claims Files stories like the one above are intended to be informational in nature. Please contact your insurance broker and/or agent for your specific coverage implications based on your specific situation.