Wrongful Termination/Retaliation

A nonprofit organization insured by Monitor was sued by a former employee for wrongful termination, retaliation and labor code violations. This organization, which provides rehabilitation and counseling services for juveniles, had terminated the employee. Shortly after being terminated, the former employee alleged that he had been terminated for complaining about the lack of diverse representation on the organization’s board of directors and for notifying government authorities of improper public funds expenditures. Although on the surface this claim appeared to be defensible, the negative publicity surrounding the audit of the nonprofit’s financial records presented a difficult litigation environment. The case was settled after defense costs of $46,000 had been incurred.

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