Retaliation is now the most common workplace complaint in the United States. In 2023, more than half of all Equal Employment Opportunity Commission (EEOC) charges included retaliation claims (EEOC, 2023). The trend shows that retaliation is not just a legal concern, but also a threat to employee well-being and financial risk for organizations.
So, what is workplace retaliation? At its core, retaliation happens when an employer punishes an employee for exercising protected rights, such as reporting harassment, raising pay concerns, or participating in an investigation. Even subtle retaliation can harm careers, lower morale, and expose businesses to costly claims.
Defining retaliation in plain terms
The U.S. Department of Labor explains that retaliation occurs when an employer, supervisor, or manager takes adverse action against someone for asserting legal rights (DOL). Adverse action does not always mean firing. It can look like denied promotions, reduced hours, or exclusion from training opportunities.
The EEOC notes that retaliation is unlawful if it would reasonably discourage someone from speaking up about discrimination or misconduct. Employers can still discipline workers for valid reasons, but they cannot do so in response to protected activity.
Real-world examples of adverse action
Understanding what is workplace retaliation is easier with real scenarios. Common examples include the following:
- Termination or demotion after filing a complaint
- Exclusion from meetings or projects tied to advancement
- Harsh schedule changes without a plausible cause
- Excessive scrutiny or sudden negative performance reviews
- Threats to report someone to immigration or law enforcement
In one recent case highlighted by OSHA, an employee who reported a fire hazard was later denied the ability to swap shifts, even though other employees were still allowed to do so. This unequal treatment counted as retaliation because it was tied to the employee’s protected activity (Whistleblowers.gov).
Also read: How Immigration Audits Put Employers at Risk and How to Prepare
For employees: Responding to retaliation
Employees who believe they are experiencing retaliation should take steps to protect themselves:
- Document what you can – Record dates, actions, witnesses, and communications related to suspected retaliation.
- Report internally – Notify human resources or a trusted manager and follow company reporting procedures.
- File an external complaint – Depending on the issue, employees may reach out to OSHA, the DOL Wage and Hour Division, the EEOC, or the National Labor Relations Board.
- Seek legal advice – Consulting an employment attorney can help clarify rights and possible remedies.
Filing a retaliation complaint may lead to reinstatement, back pay, or damages for emotional distress.
Why retaliation matters for employers
Employers may underestimate how quickly retaliation can escalate into lawsuits. As mentioned earlier, the EEOC reported that nearly 56 percent of charges filed in 2023 included retaliation. For companies, the consequences of such an escalation include legal fees, settlements, and reputational damage.
Beyond financial costs, retaliation undermines workplace trust. Employees who fear punishment for speaking up are less likely to report safety hazards, harassment, or fraud. That silence increases risks across the organization.
Preventing retaliation in the workplace
Employers carry significant responsibility in preventing retaliation. Best practices include:
- Training supervisors to recognize retaliatory behavior.
- Maintaining confidentiality when employees raise complaints.
- Taking fair and consistent action to address misconduct.
- Encouraging open communication and a culture of trust.
By fostering transparency and fairness, employers comply with the law, improve workplace morale, and reduce turnover.
Download our eBook: What is Workplace Retaliation? Understanding Employee Protections and Employer Risks
Protecting your business with EPLI coverage
Even with training and sound policies in place, no employer is fully immune from retaliation claims. Employment Practices Liability Insurance (EPLI) provides an essential safety net. EPLI helps cover defense costs, settlements, and damages tied to claims of discrimination, harassment, wrongful termination, and retaliation.
McGowan Professional offers EPLI coverage designed to protect organizations from these high-stakes risks. The right policy can safeguard both your finances and your reputation.
Read more about EPLI coverage and its benefits here.
Retaliation has become one of the most pressing workplace challenges. Both employees and employers benefit from understanding what is workplace retaliation, so that they are able to recognize the signs and, most importantly, take steps to prevent it. Strong policies, open communication, and EPLI coverage work together to create a fairer and safer workplace.