Posts tagged Harassment

The Fair Employment and Housing Act (“FEHA”) has always contained a two layered statute of limitations for employees to bring lawsuits against their employers for discrimination, harassment, and retaliation.  Formerly, employees had one year to file an administrative complaint with the Department of Fair Employment and Housing (“DFEH”) from the date of the alleged discrimination, harassment, or retaliation.  If an employee did not comply with this administrative requirement, then the employee’s complaint would be subject to dismissal for failure to exhaust administrative remedies.  Even if an employee were to file a timely administrative complaint, they were subject to a one year statute of limitations for filing a civil action from the time they received a right to sue letter from the DFEH.  The Stop Harassment and Reporting Extension Act (“SHARE Act”) has greatly expanded employee rights. (AB 9, 2019).

In the recent case of Huerta v. Kava Holdings, Inc., 2018 WL 5999639 (Cal. Ct. App. Nov. 14, 2018), the California Court of Appeal held that a prevailing employer that made a section 998 settlement offer to the plaintiff in an action brought under the Fair Employment and Housing Act (“FEHA”) was not entitled to costs and expert witness fees incurred after the plaintiff’s rejection of the offer.

The DFEH recently released its Sample Equal Opportunity Policy. The Sample Policy is available in PDF and Word form on the DFEH’s employment resources page at https://www.dfeh.ca.gov/resources/posters-and-brochures-and-fact-sheets/poster-and-brochure-tab-list/?target=employment.

Employers who are faced with sexual harassment or sexual abuse claims by a current or former employee now have another problem to consider – are the settlement payment and related attorney’s fees incurred in settling the claim deductible?  Unfortunately, the answer to that question may now be no.

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