Construction and Contracting Firms: What Could Go Wrong?

A class of landscapers contended they were paid below living wage and/or minimum wage. It was a purported class action wage claim that settled. Class notification is in process and more than $25,000 has been paid in defense costs.


A former employee filed a complaint with the Department of Labor and later filed suit alleging FMLA violations. The claimant contended she was on leave for pregnancy complications and was terminated for falsifying a physician note to extend her leave. The parties eventually settled, and $28,000 was paid toward settlement and defense costs.


Various subcontractors involved in a construction project managed by the company filed several administrative complaints alleging discrimination, harassment and retaliation. A state agency issued a $366,000 punitive damages award, which is not expected to hold up on appeal of the entire decision. $100,000 has been paid in defense costs and global settlement efforts are underway.


A claimant alleged she was not promoted to a management position because she was pregnant. She further contended she was constructively discharged after returning from maternity leave, because of alleged severe harassment for filing her charge. A summary judgment motion has been filed and settlement discussions are underway.


A former employee alleged he was terminated for complaining about unsafe work conditions. The matter settled for $35,000, but only after $70,000 was incurred in defense costs.


Our team of experienced underwriters, dedicated claims handling unit and technical support staff understands the unique management lability exposures depicted above and can help tailor a policy to find acceptable coverage and claim solutions for your clients!