Company Owner to Pay $1.04 Million to Employees Terminated for Assisting Safety Investigation
A federal judge in the U.S. District Court for the Eastern District of Pennsylvania has awarded $1,047,399 in lost wages and punitive damages to two former employees of a Montgomeryville, Pennsylvania, manufacturer after a jury found the company and its owner fired them in retaliation for their participation in a federal safety investigation.
On April 2, 2019, a jury determined that Lloyd Industries Inc. and owner, William P. Lloyd, illegally fired the employees because they participated in a 2014 inspection by OSHA. The inspection followed an incident in which one of the employees’ co-workers suffered the amputation of three fingers.
The company fired one of the employees after OSHA began an on-site investigation, and fired the second employee shortly after OSHA issued citations, and assessed Lloyd Industries with penalties. The acts of retaliation violated Section 11(c) of the Occupational Safety and Health Act (OSH Act). The court’s award of $500,000 in punitive damages is the largest punitive award ever under Section 11(c) of the OSH Act. The court justified the award in light of the defendants’ “deliberative flouting of the act.”
In addition to damages, the judge awarded the former employees $547,399 in front and back pay, prejudgment interest and additional amounts to compensate for the adverse tax consequences of their receiving a large, one-time payment. The judge also ordered that Lloyd Industries and William P. Lloyd post an anti-retaliation notice at the plant immediately, and never again violate Section 11(c) of the OSH Act.
“The court recognized that all employees have a federally protected right to speak out against unsafe and unhealthy working conditions, to participate in U.S. Department of Labor investigations, and to be compensated if they are terminated in retaliation for exercising those rights,” said Regional Solicitor Oscar L. Hampton III. “The significant punitive damages send a strong message to this employer and others that deliberately violating these laws will not be tolerated.”