Retaliation Claims are on the Rise in 2025

Retaliation claims can carry higher legal exposure than the original complaint. That’s because they imply intentional harm, meaning an employer punished someone even when they were involved in a protected activity. Lawsuits can involve compensatory and punitive damages, and public disputes can harm the business’s brand and morale.

According to the United States Department of Labor, retaliation takes place when an employer fires or takes adverse action against an employee when they are engaged in protected activity.

Protected activities include reporting or resisting discrimination or harassment, participating in investigations, requesting accommodations, and exercising other legal rights.

An adverse action is any action that an employer takes that will have a negative impact on the employee. This can include termination, demotion, pay cuts, or even the denial of a promotion.

Employers can proactively reduce the risk of retaliation claims by taking four simple steps.

Step 1: Training

Ensure that all supervisors and HR professionals are trained to recognize protected activity and understand what retaliation looks like. Clear expectations reduce the risk of impulsive or inconsistent reactions.

Step 2: Documentation

Ensure there is a clear, objective paper trail for any employment action. Documentation should reflect that actions are based on conduct or business need, not protected activity.

Step 3: Investigate every discrimination or harassment claim

No matter how minor a complaint may seem, take it seriously. Conduct timely, impartial investigations and follow through with appropriate responses.

Step 4: Maintain consistency

Remember—prevention is cheaper than defense. Proper training, documentation, and consistency are your strongest defense against retaliation claims, and the time and effort it takes to implement these things costs less than litigation from a disgruntled employee.

Want to learn more about how to avoid litigation for your business? Check out our YouTube Video.