No Protection for Employees Aiding Injured Employees in Claiming Worker's Compensation Benefits

The Iowa Supreme Court ruled today that discharging an employee for aiding injured employees in claiming worker’s compensation benefits is not unlawful. At-will employees may be terminated for any lawful reason. One unlawful reason Iowa recognizes is discharging an employee for pursuing worker’s compensation benefits. In this case, the supreme court was to determine whether that exception should be broadened.

In this situation Ballalatak was not the injured employee. Ballaltak was the supervisor of two employees who had been injured on the job. When Ballalatak inquired as to whether the employer was lawfully handling the worker’s compensation claims of two injured employees he was terminated. Ballalatak argued that the pursuit of worker’s compensation benefits exception should extend to employees who attempt to help the injured employee receive worker’s compensation benefits. He pointed to Iowa’s OSHA laws and regulations, wage payment collection actions, and discrimination laws to support his claim. The Supreme Court disagreed. In each of the noted statutes, there is clear language that prevents employers from retaliating against other employees who assist or participate in a proceeding or action brought by the injured employee. Iowa’s worker’s compensation laws and regulations have no such express policy. The public policy protection found in Iowa’s worker’s compensation statutes protects the injured employee, but does not extend to those who assist the injured employee. 

 

Although Ballalatak was doing something presumably commendable—assisting injured employees in assuring their rights were not being trampled upon—Ballalatak was not wrongfully discharged. This case is an example of the court’s unwillingness to deviate from the at-will employment structure and the difficulty in proving wrongful termination.

Retaliation

I recently attended an employment law seminar in St. Paul, Minnesota. One key topic that kept resurfacing in the sessions I attended was RETALIATION. Title VII retaliation claims have increased 19% from 2006

An employer retaliates when it makes an adverse employment decision which tends to discourage an employee from engaging in protected conduct. What is an adverse employment decision? Although not clearly defined, the Supreme Court has made it clear that it is not necessarily have to be a tangible employment decision, such as termination. What is protected conduct? Whistleblowing, filing a complaint, taking FMLA leave or making a worker’s compensation claim are all examples of protected conduct.

What should employers do to minimize retaliation claims?

  • Have a clear policy prohibiting retaliation;
  • Educate managers and supervisors about retaliation;
  • Enforce policies consistently for all;
  • Refrain from making hasty decisions when employees have engaged in protected activity in the recent past even if you believe the decision is warranted;
  • Investigate all retaliation claims and discipline those who have engaged in retaliation. Inform the employee alleging retaliation of your findings and whether any disciplinary action will take place;