Retaliation Laws

What Does Retaliation Laws Mean?

Retaliation laws prohibit employers from punishing employees for exercising their equal employment opportunity rights. Such punishment can take various forms, including discrimination and termination.

Insuranceopedia Explains Retaliation Laws

Retaliation occurs when an employer takes adverse action against an employee for engaging in conduct the employer believes harms the company’s image or work environment, even though the employee’s actions are legally protected. Such negative actions may include firing or demoting the employee. Standard general liability insurance policies typically exclude employment practices claims, so employers usually need a separate employment practices liability policy to defend against retaliation suits.

Legally protected activities include testifying against an employer in a court case, inquiring about wage disparities, and opposing discrimination and harassment. Because the legal costs of defending these complaints can run into the tens of thousands of dollars, some employers add employment practices liability coverage to the rest of their business insurance.