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Last week, FoxHire posted a blog article about how discrimination claims had spiked during the recession and how these claims drain a company’s time and money. But for some companies, a discrimination claim is just the tip of the iceberg. They may sail through a discrimination lawsuit only to be blindsided by an ensuing retaliation claim.

Retaliation is when an employer takes an adverse action against an employee who has filed a discrimination claim. Even if an employer successfully defends a discrimination claim, they can be found guilty of retaliation.

The Equal Employment Opportunity Commission (EEOC)’s fact sheet on retaliation provides the following examples of retaliation:

  • Employment actions such as termination, refusal to hire, and the denial of a promotion
  • Threats
  • Unjustified negative evaluations
  • Unjustified negative references
  • Increased surveillance

Retaliation claims are just another legal risk that many employers prefer to outsource by utilizing contractors who are employees of contracting back-office firm. As the Employer of Record for the contractors, the back-office assumes most of the risk and hassle associated with these types of claims.

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