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Employment discrimination claims can escalate quickly when allegations involve multiple areas of employment law, including age, disability, harassment and retaliation. Early evaluation can help organizations understand their exposure, identify opportunities for resolution and avoid the increasing defense costs associated with prolonged litigation.

In this case, a pre-litigation demand letter and Charge of Discrimination filed with the Department of Fair Employment and Housing (DFEH) alleged age and disability discrimination, harassment, and retaliation. The estimated settlement range was $50,000 to $60,000.

The EPL team undertook an early evaluation of the allegations and identified settlement opportunities. By taking a proactive approach to resolution, the team was able to focus negotiations on achieving an appropriate outcome while keeping defense costs under control.

Key outcomes included:

  • Settlement achieved $25,000, below the estimated settlement range of $50,000–$60,000.
  • Early risk evaluation is used to identify settlement opportunities.
  • Low defense costs through proactive claims management.
  • Litigation escalation avoided through early intervention.

The case highlights how early involvement from a specialist EPL claims team can help organizations make informed decisions before a claim develops into a more costly dispute. Understanding the potential exposure at an early stage can create opportunities to resolve matters efficiently while protecting the client's financial and operational interests.

Through ongoing collaboration with HR teams, insurers and defense counsel, the EPL team helps clients develop practical strategies for managing employment claims from initial notification through to resolution.

Authors


Brian Smith

Brian Smith

Executive & Professional Liability — EPL Lead Gallagher Bassett Specialty
Nicholas Gumpel

Nicholas Gumpel

Leader of Executive & Professional Liability — Gallagher Bassett Specialty
Tim Over

Tim Over

SVP — Business Development Director — Gallagher Bassett Specialty
Rob Blasio

Rob Blasio

Managing Director — Gallagher Bassett Specialty

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