Posted on May 17th, 2019
Find below a complete transcript of this video.
What’s going on fellow entrepreneurs? John Fagerholm with Defend My Biz, and today I wanted to explain what a 132a claim is.
132a is separate litigation in the context of worker’s comp. Let me explain. California requires all employers to have worker’s compensation insurance if they have at least one employee.
Worker’s comp insurance companies cover the underlying worker’s comp claim, but they don’t cover 132a claims. Even if you’re insured, you’re likely going to have to hire an outside attorney to defend you if you also receive a 132a claim.
A 132a claim is an anti-discrimination claim, basically, and it’s if an employee files or indicates that he’s going to file a worker’s comp claim and he’s terminated or he’s threatened to be terminated, that’s when a 132a claim is filed.
And even though it’s related to the worker’s comp and is in the context of worker’s comp and is usually settled in worker’s comp, along with the underlying case, insurance companies still typically don’t cover it.
I think I’ve maybe seen it once or twice in my career, where an insurance actually covered the 132a claim.
The penalties for a 132a claim is a maximum of a $10,000 fine, plus the back pay that they would have received if they hadn’t been terminated, and worst of all is that you have to reinstate their employment.
So 132a claims, like I said, are typically resolved within the context of worker’s comp, but you will have to hire outside counsel for it. And if some employee files a worker’s comp claim, my suggestion is do not fire.
Keep them there. Let it play itself out.
All right, everybody. Have a good one.
