When employees lose their jobs because of alleged discrimination, the Pennsylvania Human Relations Commission (PHRC) can award them lost wages based on the difference between their past earnings and what they currently make as self-employed individuals, the Commonwealth Court has ruled.
They’re not required to go out and find comparable jobs, and their former employers may end up subsidizing their entrepreneurship for a while.
The case: Aida Armani worked as a color stylist for a small hair salon. After she complained about sexual harassment, the salon fired her. Instead of looking for another job, she started her own salon and filed a claim with the PHRC.
After hearings, the PHRC concluded that Armani had been sexually harassed and said it was reasonable for her to start her own business rather than look for work. It calculated lost wages based on her previous earnings and what she took out as salary from the young business.
The salon appealed, but the Pennsylvania Commonwealth Court upheld the PHRC’s decision. It did, however, ask the commission to take a closer look at her earnings from the new business, not just the amount she took out as salary. (Raya and Haig Hair Salon v. Pennsylvania Human Relations Commission, No. 327 C.D. 2006, Pennsylvania Commonwealth Court, 2007)
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/2511/found-liable-for-discrimination-youll-owe-back-pay-even-if-fired-worker-starts-a-new-business "
- Consider ADA, discrimination, validity issues when using personality tests
- Nighthorse Campbell & discipline
- Employee out on maternity leave: How long must we hold her position?
- When employee complains of bias or harassment, beware acting in ways that look like retaliation
- Take same-sex harassment claims seriously