Financial Damages Of Work Place Discrimination

When discrimination occurs in the workplace, there are consequences that the company experiences and consequences suffered by employees. The consequences can range from tangible or intangible, and moderate-to-monumental. Although it can occur infrequently, discrimination is not welcome and is harmful, but the reality is that discrimination can be damaging to both parties if it occurs. In addition, the reality of discrimination and its consequences are obvious manner.

Fines and penalties

Discrimination includes three types of tangible consequences: fines, costs of litigation and bad publicity. Fines and penalties are imposed by federal or state agencies based on the investigation and discovery of discriminatory practices in the workplace. The Equal Employment Opportunity Commission (EEOC), the Department of Labor, Office of Federal Contract Compliance Program(OFCCP) and Wage and Hour Division (WHD) have congressional authority to impose fines and sanctions and support the agreements on behalf of employees where it is evident that there has been discrimination. The EEOC enforces Title VII of the Civil Rights Act of 1964 and other laws prohibiting discrimination in employment. OFCCP enforces requirements under Executive Order 11246, and WHD enforces the laws contained in the Act Fair Labor Standards. In fiscal 2008, the WHD recovered more than $ 185 million in back wages for more than 228,000 employees in the fiscal year 2008, making a cumulative total of eight years of wages recovered by the agency totaled $ 1.4 billion.

Litigation costs

Costs are associated with litigation of employment discrimination claims. Attorneys’ fees, research expenses, and lost productivity are examples of the tangible consequences of discrimination in the workplace. Also, if it is determined that an employer has engaged in discriminatory practices, it has been known that the judges may order the employer to pay all attorney fees. In addition to the costs of litigation, they are the impressive sums of disciplinary damages, compensatory damages, back pay and restoration of employment in many cases. During fiscal 2009, the EEOC through the administrative activities of the agency secured more than $ 294.2 million in monetary benefits.

Profits and lost revenue

Another tangible result of discrimination, although more difficult to measure, is advertising on agreements, fines and penalties assessed employers. There may be decreased sales and income as a result of the coverage of the media. socially responsible consumers may not want to support a business that has been found guilty of discriminatory practices in employment. The websites of these agencies regularly published the fines applied to companies. On June 22, 2010, 16 agreements are in the press room of the EEOC website. The agreement last June 22, 2010, involves a clinical oral surgery in the Midwest, Oral Surgery Associates Maxillofacial LLP Sioux Falls SD, agreed to pay $ 95,000 in disciplinary and legal damage, plus $ 23,775 for the losses and interest. Many of these agreements and fines are not covered in local or national newspapers; however, the coverage they receive for being on the EEOC website is probably more revealing.