Aggressive And Reputable Labor Code 132a Defense
The California Labor Code prohibits an employer from discriminating against an employee for filing for workers’ compensation benefits or because of a work-related injury. If an employee successfully proves a violation of Labor Code Section 132a, the employer would be liable for a 50% increase in workers’ compensation benefits up to $10,000. Additionally, back wages and reinstatement may be awarded and the employer could face a criminal charge. As a general rule, liability for a 132a violation is not covered under a workers’ compensation policy, although it may be possible for an employer to obtain defense costs under very specific EPLI policies.
Detailed Attention To Each Unique Case
Employees are often quick to cite discrimination when their position is terminated within a company or when a disability is not accommodated after filing for workers’ compensation. This allegation and the legal complexities that follow are often saturated in a variety of misconceptions for both the employer and the employee. The realities of doing business may provide a defense to the alleged discrimination. If the action of the employer serves a valid business purpose exercised in good faith or if the employer takes action for a legitimate nondiscriminatory reason, the alleged discrimination may be successfully defended.
For example, a termination may be justified if the employee violated company policy or committed a crime or was terminated as a result of good faith personnel action. Additionally, if the employer finds that it cannot accommodate the injury according to job requirements, termination may be considered a legitimate business necessity.
132a claims are often associated with claims of discrimination under other state and federal laws such as the Fair Employment and Housing Act (FEHA), the Americans with Disabilities Act (ADA) and the state and federal laws regarding Family Leave, which carry significant monetary penalties. Such claims are outside of the workers’ compensation system and often require the involvement of legal specialists in these fields as early as possible. The variety of factual scenarios is limitless, but patterns are discernible by trained and experienced defense counsel.
Early Warning Signs: Identifying Potential 132a Claims Before They Escalate
The most successful defense is the one that prevents a claim from ever being filed. Leveraging our Insider Intelligence, we help our clients identify workplace scenarios that frequently serve as catalysts for 132a allegations.
The timing of employment decisions is the most common “red flag.” When a termination, a negative performance review, or a change in job duties occurs shortly after an injury claim is filed, the optics alone can trigger litigation. We counsel our clients to look for these critical friction points:
- The post-injury performance shift: Suddenly documenting performance issues that were ignored prior to the injury.
- The accommodation gap: Failures or delays in the interactive process that an employee may interpret as “discrimination”.
- The “Clean House” mentality: Rushing to fill a position while an employee is on temporary disability without a documented business necessity.
Because we understand the perspective of the claims desk, we see risks that other attorneys miss. We move beyond reactive litigation to provide practical guidance on creating defensible paper trails. By documenting the nondiscriminatory, business-related reasons for employment actions in real-time, we build a logical rationale for your decisions long before they are challenged in court.
The True Cost Of 132a Claims
Many employers mistakenly view a 132a claim as a minor nuisance capped at a $10,000 penalty. However, we know the true cost is often many times that figure.
The financial exposure of a 132a claim includes:
- Direct statutory costs: The 50% penalty, back wages and the often-disruptive requirement of reinstatement.
- The multiplier effect: A 132a claim is often a precursor for broader discrimination litigation under FEHA, ADA or FMLA.
- Operational drain: The diversion of management time and the negative impact on company morale and reputation.
- Insurance complications: 132a penalties are generally not insurable under standard workers’ compensation policies, meaning the employer often bears the full weight of the award and defense costs.
Our Specialized Approach To Cost-Efficiency
At Sassano & Fleischer Attorneys at Law, our relentless approach is always balanced with cost-efficiency. We provide a rigorous cost-benefit analysis at the outset: comparing the expense of early intervention against the long-term drain of full-scale litigation. In the legal landscape of Northern California workers’ compensation, specialized isn’t just a buzzword – it’s a financial strategy. We protect your assets by combining legal knowledge and experience with the street-smart perspective of former adjusters to ensure that a single injury doesn’t turn into a catastrophic employment liability.
Our firm counsels our clients in an effort to identify and avoid potential claims of discrimination. We work effectively with other legal specialists when claims of discrimination outside of the field of workers’ compensation are filed to avoid duplicative work and to resolve such claims cost-effectively.
Contact Sassano & Fleischer Attorneys at Law
For more information, call 800-724-1727 or fill out our online contact form.