Charter School Insurance: EPLI Claim Scenario
Every few months we like to share information on various claims experienced by charter schools. While the names and any personal information have been removed, the claims are still very real, and important to take note of.
TUV Charter School terminated a long-time administrator for alienating employees and parents and disinterest in his job. The manager was 59 years old when the termination took place, and TUV checked off “other” instead of “poor performance” on the termination form as the reason for the termination.
The administrator filed a charge of discrimination with the Equal Employment Opportunity Commission, alleging he was terminated because of his age. In his charge, he stated that he had always received regular merit pay increases, was replaced by a worker in his 30s, and that some members of senior management had made comments about needing “to get rid of the old guys.”
The administrator subsequently filed a lawsuit against the school seeking two years of lost wages and benefits, as well as compensation for emotional distress. Although TUV believed it was innocent of the allegations, the school determined that defending against the lawsuit would be costly. The case eventually settled out of court for $250,000, while expenses totaled more than $60,000.
