Four Groups Blog



2/5/2006


Emotional Injury Liability Insurance

I read an interesting post from Jerry Pounds at Management Issues. In short, the issue of intentional emotional distress can now carry a hefty penalty, at least in the US.

A hospital maintenance worker was recently awarded an $11.65 million jury verdict in Federal District court in Chicago against his employer for intentional infliction of emotional distress.

In an article in HR Magazine, Jathan Janove reports an increase in employee suits related to “discharge, demotion, pay cuts and other adverse employment actions.”

According to Janove, employees sue not because of the specific action but because of the emotions created by the “perceived insult.”

According to a 1999 study in Ohio, “employees who were not treated with dignity and respect were 35 times more likely to file claims (emotional injury) than those who were.” Employee anger becomes employer litigation; a threat to employer liability and a risk management nightmare.

No doubt organisations will find this a challenge to react to and successfully meet. As Jerry writes;

For decades, the American worker has suppressed their anger about indignities and disrespect experienced because of an anachronistic class system perpetuated by inadequate leadership models. They harbored a burning anger that is finally finding expression and recourse in a sympathetic generation of judges and jurors.


Filed under:
  • General
By Bruce Lewin @ 2:22 pm

Comments»

The URI to TrackBack this entry is:

No comments yet.

RSS feed for comments on this post.

Leave a comment

Line and paragraph breaks automatic, e-mail address never displayed, HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>



Email updates
First name
Email
Quarterly articles and research
All blog entries

RSS feeds

All blog entries
Articles and research
Comments

Most talked about
  • Linking Financial Values and Cultural Values (23)
  • The Tension in Collaboration (19)
  • Managing Intangibles (16)
  • HR – Boom or Bust? (13)
  • Lehman Brother's CEO Richard Fuld (6)
Links
  • Anne Marie McEwan
  • Bill Ives
  • Dan McCarthy
  • Dig for Leadership
  • Fit Forum
  • HR in China
  • Jack Martin Leith
  • Johnnie Moore
  • Michael Specht
  • Mike Chitty
  • Nick McCormick
  • Terrence Seamon
Categories
  • 4G
  • Articles & Research
  • Culture
  • General
  • Intangibles
  • Leadership
  • Psychology
  • Strategy
  • Teams



Archives

  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • April 2008
  • January 2008
  • September 2006
  • June 2006
  • May 2006
  • February 2006
  • July 2005
  • June 2005
  • May 2005
  • April 2005
  • February 2005
OPML File
    Download
Other
  • Login
  • Register
  • RSS
  • Comments
  • WP

© Four Groups Ltd