How to Win a Retaliation Lawsuit and Defend Your Business

By Matthew Novian | May 25, 2025 | Employment Law

A retaliation lawsuit arises when an employee claims they were punished for engaging in a legally protected activity, such as reporting misconduct, filing a complaint, or participating in an investigation. Protected activities are defined by employment laws like Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), and other state labor laws.

It is essential for businesses to take all claims seriously, conduct thorough internal investigations, and protect themselves against legal exposure.  If your business is facing workplace retaliation cases, it is important to document everything. Then, investigate complaints promptly and fairly, and work with an experienced employment law attorney.

Facing a retaliation lawsuit? At Novian & Novian, we understand how damaging these claims can be to your business. Our seasoned employment law attorneys have a track record of successfully defending employers in complex litigation.

We provide clear legal guidance, strategic defense planning, and powerful courtroom representation. Contact us today for a consultation and get the experienced legal support your business deserves.

In this guide, we’ll cover what a retaliation lawsuit is and why these claims should be taken seriously. We will also share practical tips on how to defend your business and win. 

What Is a Retaliation Lawsuit?

A retaliation lawsuit is a legal action brought by an employee who believes they were punished by their employer for engaging in a legally protected activity. Workplace retaliation occurs when an employer takes adverse action against an employee for asserting their rights under employment laws. This can include reporting discrimination, harassment, wage violations, unsafe working conditions, or participating in investigations related to workplace misconduct. One of the most common forms of retaliation happens after an employee reports discrimination or harassment based on race, gender, religion, or other protected characteristics. 

Similarly, retaliation may occur after an employee discloses illegal activities within the company, such as fraud or safety violations—an act commonly referred to as whistleblowing. Employees are also protected when they exercise their legal rights, such as requesting medical leave under the Family and Medical Leave Act (FMLA) or filing a complaint with the Equal Employment Opportunity Commission (EEOC).

There are several common workplace scenarios that often lead to retaliation claims. For instance, an employee who files a harassment complaint may later face disciplinary action that appears unjustified. Others may be terminated during or shortly after an internal investigation, raising suspicions that the firing was in response to the complaint. Even more subtle changes, such as being reassigned to less favorable duties, having work hours reduced, or experiencing a sudden drop in performance reviews, can all serve as evidence of retaliatory behavior, especially when these changes follow whistleblowing or the assertion of legal rights.

The legal framework protecting employees from retaliation is well established at both the federal and state levels. Federal protections are outlined by the EEOC and stem from laws such as Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), and the FMLA. These laws prohibit employers from retaliating against employees who assert their rights under the law. 

In addition, federal whistleblower statutes protect employees who report illegal conduct, especially in sectors like finance, healthcare, and government contracting. Many states also have their own labor laws and whistleblower protections that expand upon or reinforce these federal guidelines.

What to Do If an Employee Files a Retaliation Claim

When an employee files a retaliation complaint, the situation must be handled with urgency, care, and professionalism. A retaliation claim can quickly escalate into a full retaliation lawsuit if not addressed appropriately, exposing your business to legal liability and reputational harm. 

Employers must act strategically and legally the moment an employee threatens a lawsuit related to workplace retaliation, wrongful termination, or discrimination. The steps to take are: 

Acknowledge the Claim Immediately

The first step any employer should take is to acknowledge receipt of the retaliation complaint. This shows that the company takes the matter seriously and respects the legal process. 

A formal letter detailing the company’s intention to investigate the retaliation claim should be sent to the employee. It should also reassure the employee that retaliatory actions are strictly prohibited and that the company is committed to preventing retaliation in the workplace. 

Responding promptly helps build trust and may deter the situation from evolving into a more complex retaliation lawsuit. Failing to acknowledge or ignoring the retaliation complaint may be interpreted as a retaliatory motive or even evidence of a hostile work environment.

Conduct a Fair and Thorough Investigation

Once a retaliation complaint has been acknowledged, the employer’s human resources department or an external investigator should conduct a thorough internal investigation. The person handling the investigation must remain neutral to avoid any appearance of bias. 

It is important to gather evidence, including witness testimony, internal complaints, and documentation such as emails, performance records, and any adverse action taken. If the employee reported discrimination, harassment, or unsafe work conditions prior to the alleged retaliatory behavior, those records must also be reviewed. 

Witness statements and circumstantial evidence may also be key in determining whether the adverse employment actions were legitimate business decisions or part of a retaliatory pattern. Reviewing company policies, previous complaints, and disciplinary records can help establish or refute a causal connection between the protected activity and the retaliatory actions.

Review the Facts and Analyze the Situation

After gathering all relevant information, it is essential to assess whether the employer’s adverse action was based on valid business grounds. These could be factors such as poor performance, policy violations, or unacceptable behavior, or if it may be interpreted as punishing employees for protected actions like reporting discrimination or filing a formal complaint. 

Keep in mind also that timing matters. If an employee was subsequently terminated shortly after engaging in a protected activity such as requesting medical leave under the Family and Medical Leave Act or opposing discrimination based on sexual orientation, race, or gender identity, this can create the appearance of a retaliatory motive. 

Consulting with an experienced employment lawyer is crucial at this stage. Legal counsel can evaluate whether the actions constitute retaliation and ensure your approach aligns with federal protections like Title VII, the ADA, and EEOC guidelines, as well as relevant state-level labor laws.

Take Appropriate Corrective Action

If the investigation confirms that retaliation occurred, the employer must act immediately to remedy the situation. This may involve reversing a demotion, reinstating employment, or offering compensatory actions such as lost wages or job reassignment. It is also important to implement corrective measures to prevent future workplace retaliation, such as additional training or changes to company policies.

 If the claim is unsubstantiated, the findings should be respectfully communicated to the employee, along with documented reasoning that shows the decision was based on objective evidence, such as performance reviews or job effectiveness. Regardless of the outcome, reaffirming the company’s commitment to a discrimination-free workplace and zero tolerance for retaliatory behavior is key to preventing future retaliation complaints.

In either scenario, hiring a qualified employment lawyer is one of the most important steps you can take. The cost of hiring an employment lawyer is small compared to the financial and reputational damage that can result from a strong retaliation case involving direct or circumstantial evidence. A legal expert can help you navigate complex retaliation cases, defend against wrongful termination claims, and present substantial evidence in your favor should the case go to court.

What Makes a Strong Retaliation Case?

A strong retaliation case is built upon a clear sequence of events, solid documentation, and credible evidence that connects an employee’s protected activity to a negative employment outcome. To establish a viable retaliation claim, the employee must first show that they engaged in a legally protected activity. This could include filing a complaint about workplace discrimination, reporting harassment, acting as a whistleblower, requesting medical leave under the Family and Medical Leave Act, or opposing unlawful practices.

The second critical component is proof that the employer took an adverse employment action against the employee after they engaged in the protected activity. Examples of adverse actions include termination, demotion, a reduction in pay or hours, or reassignment to a less favorable position. These actions must be clearly documented and timed closely enough to suggest a retaliatory motive. For example, if an employee was terminated just weeks after reporting racial discrimination or sexual harassment, that temporal proximity could significantly strengthen the case.

To build a strong retaliation lawsuit, the employee must also demonstrate a causal connection between the protected activity and the employer’s adverse action. This causal link may be established through direct evidence such as emails or statements, or through circumstantial evidence showing a pattern of behavior.

A lack of a legitimate business reason for the adverse action can further support the argument that retaliation was the true motive. If the employer cannot show that the action was due to unacceptable performance or policy violations, and if prior performance reviews were positive, this discrepancy can be damaging to the employer’s legal defense.

Another powerful element in a retaliation case is comparative evidence. If other employees who did not engage in protected activity but were in similar situations were treated more favorably, this can serve as evidence of discriminatory or retaliatory behavior. For instance, if an employee who reported discrimination was the only one subsequently demoted while others with similar records were not, that difference in treatment becomes compelling.

The legal process for proving retaliation involves gathering detailed records, witness testimony, and an understanding of employment law. Novian & Novian can provide guidance, help you evaluate your options, and prepare a strong case or defense grounded in substantial evidence.

How to Protect Your Business from Retaliation Claims

Retaliation in the workplace is a serious legal issue that can result in costly litigation, reputational damage, and long-term impacts on employee morale. Employers must take proactive steps to prevent retaliation and protect the business from being accused of retaliatory behavior.

These preventive steps include:

Implement Clear Anti-Retaliation Policies

Implementing a strong anti-retaliation policy is the first line of defense. Clear company policies should explicitly state that retaliation for reporting discrimination, filing an internal complaint, requesting leave under the Medical Leave Act, or engaging in any other protected activity will not be tolerated. 

These policies should be easily accessible, such as in employee handbooks or posted on the company’s intranet. Employees must understand what constitutes retaliation and know where to report it. Policies should be reviewed regularly in consultation with an employment lawyer to ensure they reflect the latest federal and state employment laws, including guidance from the Equal Employment Opportunity Commission (EEOC).

Investigate Complaints Thoroughly

When a retaliation complaint is made, it is critical that the employer’s human resources department immediately initiates a fair and neutral internal investigation. Whether the issue involves alleged retaliatory actions following a racial discrimination report or unfair treatment due to sexual orientation, all claims must be taken seriously. 

Investigations should include gathering direct evidence, circumstantial evidence, witness statements, and reviewing relevant employee files. Keeping detailed records of the investigative process, including interviews and emails, can be crucial later in proving that no retaliatory motive existed and that any adverse action taken was based on unacceptable performance or legitimate business reasons.

Communicate With Employees Openly and Transparently

Communication plays an important role in preventing and defending against retaliation claims. Employers should foster an open-door policy that allows employees to voice concerns freely, without fear of retaliation. 

When adverse employment actions are necessary, such as demotions or terminations, leadership should clearly communicate the business rationale behind these decisions. Transparency in decision-making not only builds trust but can also help disprove a retaliation complaint by showing that adverse actions were unrelated to any protected action the employee took.

Consult an Experienced Employment Lawyer

Consulting with an experienced employment lawyer is essential, particularly when navigating complex retaliation cases. A legal expert can review the facts, help gather evidence, and advise on how to proceed if a claim escalates.

Legal counsel can also evaluate whether your policies align with the EEOC, help you prepare for presenting evidence in court, and provide guidance on defending against claims of retaliation, especially in cases involving emotional damages, lost wages, or claims of being subsequently terminated after filing a complaint.

Looking for Proven Legal Defense for Your Business?

Every business has a responsibility to uphold the right to a fair, respectful, and retaliation-free workplace. Whether you’re facing a retaliation lawsuit, dealing with a complex internal complaint, or simply trying to prevent legal issues before they arise, having the right legal support can make all the difference.

If your company has been accused of retaliatory behavior or is navigating a potential claim involving unfair treatment, wrongful termination, or discrimination based on race, gender, or sexual orientation, you need to work with an employment lawyer. Taking swift legal action and working with an experienced employment lawyer can protect your operations, reputation, and your employees’ rights.

Novian & Novian is recognized among the Best Employment Attorneys in California. With decades of experience in employment law, our firm offers strategic legal counsel, strong defense, and dedicated representation for businesses across California. Don’t wait for a claim to escalate. Contact us today for a free consultation.