A recent article in Becker's Hospital Review analyzed retaliation lawsuits, which have become increasingly popular within the medical sector.
A retaliation suit is often created after an employee claims his or her hospital has engaged in improper conduct or submitted false claims. Once this allegation is made, the medical organization is charged with the task of disproving the claim's legitimacy, which can become costly.
The article believes the rise in retaliation lawsuits is a result of the weakened economy, as more employees facing potential unemployment might have reason to blow the whistle on their employer.
"Even if there wasn't a retaliatory motive behind an employment action, it does not mean that an employee can't bring a claim against you," David Pivnick, a litigation lawyer, told the source. "However, avoiding discriminatory or retaliatory conduct and having appropriate policies in place can reduce the risk of being named in a retaliation lawsuit and is beneficial in defending such a lawsuit if it arises."
With this being the case, the importance of employment practices insurance is also increasing. Even if a business thinks it is acting in an appropriate fashion, disgruntled employees could think otherwise.