A primer on the pain of employee lawsuits

Settle or fight it out in court: That’s the decision every employer faces when facing a discrimination lawsuit. Here’s a good example of just how painful that process can be.
The Steel Valley (PA) school board agreed to approve a $170,000 settlement with two male teachers who claimed they were victims of gender discrimination.
The decision followed a heated court session in which the district superintendent said the settlement would “destroy the district” and the judge admonished board members for not considering the costs involved in continuing to defend the case.
The judge reminded members they “may be looking at attorney fees, costs and then some … All, by the way, (in) taxpayer dollars.”
The teachers, Clay Karadus and Steven Large, claimed the district had an unwritten policy of paying newly hired female teachers more than males, according to the Pittsburgh Post-Gazette.
They claimed that although they each had several years of experience, they were both hired at entry-level salaries. Other female teachers in the district — with similar experience — started at higher pay levels, they said.
The district maintained there was no discrimination in the hirings. The difference in pay levels was based on merit, not years of experience.
Settlement ‘too expensive’
The case was apparently settled last July, after a mediation session between attorneys for the two men and the district’s insurance carrier.
But the school board voted against the settlement, saying it was too expensive.
That stance shifted, however, after their session with the judge. Board members said they thought they could still win the lawsuit, but the “only option that made financial sense” was to settle, the board president said.
Losing proposition
Unfair as it seems, these types of cases often don’t have anything to do with the merits of the arguments on either side. It’s all about the money.
How can employers protect themselves?
There are no guarantees, especially in today’s litigious times. But clear, balanced, well-thought out policies and procedures are the best armor.