Top 5 Workplace Lawsuits Employers Should Know in 2024
Introduction: Why Workplace Lawsuits Are on the Rise
Employment law is evolving rapidly, and employers can no longer afford to ignore legal risks in the workplace. From workplace banter turning into harassment claims to multimillion-dollar lawsuits over discrimination, businesses must stay ahead of these issues.
This guide outlines five major workplace lawsuits that every employer should be aware of—and provides key lessons to help you avoid costly legal battles.
1. United Airlines (2024) – Racial Harassment Settlement
Case Summary: A Mongolian employee at United Airlines was subjected to repeated racial slurs from a manager, who also grabbed his badge and made degrading remarks. Despite the employee filing a complaint, the company failed to act for months.
Settlement: The EEOC sued, and United settled for $99,000.
Employer Lesson:
Failure to act on complaints = liability. Employers must have a clear, documented process for handling complaints swiftly.
Delays = bigger legal risk. The longer an issue remains unresolved, the higher the risk of a lawsuit.
2. River’s Edge Bar & Grill (2024) – Sexual Harassment Lawsuit
Case Summary: A restaurant owner was found to have made daily inappropriate comments and unwanted advances toward female employees. Complaints were ignored, and two other owners witnessed the behavior but did nothing.
Ongoing Case: This lawsuit is still pending, but damages could be substantial.
Employer Lesson:
Leadership accountability is key. If managers or owners ignore harassment, the entire business is at risk.
Lack of action = complicit behavior. If HR or leadership doesn’t intervene, the company can be held liable.
3. Epiq Food Hall (2024) – Racial Discrimination Lawsuit
Case Summary: A Black general manager reported repeated racial slurs from the business owner, who also denied service to Black customers. The company had no formal HR structure, and no complaint process was in place.
Ongoing Case: The lawsuit is being pursued by the EEOC and could result in major financial penalties.
Employer Lesson:
No HR structure = no defense. Every business, no matter how small, should have a formal complaint system.
Workplace culture matters. If discrimination is allowed, the company will face financial, reputational, and legal consequences.
4. Tesla’s Racial Harassment Case (2021-2024) – $15M Settlement
Case Summary: A former Tesla worker endured repeated racial slurs and offensive graffiti in the workplace. His complaints were ignored, leading him to sue. The jury initially awarded $137 million, later reduced to $15 million.
Settlement: Tesla was forced to pay $15 million after appeals.
Employer Lesson:
Ignoring workplace toxicity is costly. Companies that fail to address harassment can face massive lawsuits.
Patterns of behavior increase liability. One isolated incident may not lead to a lawsuit—but repeated complaints will.
5. Activision Blizzard’s Workplace Culture Scandal (2021-2024)
Case Summary: Activision Blizzard faced a high-profile lawsuit over its “frat boy” culture, where female employees endured discrimination, sexual harassment, and unequal pay. The scandal resulted in leadership resignations and company-wide reforms.
Outcome: Activision settled for $18 million, but the reputational damage was even greater.
Employer Lesson:
Toxic cultures make headlines. A bad workplace environment doesn’t just lead to lawsuits—it destroys employer brand.
Proactive compliance is critical. Regular audits and employee training prevent issues before they escalate.
Key Takeaways for Employers
What These Cases Show:
Workplace harassment and discrimination lawsuits are growing.
Even “jokes” and workplace banter can become legal risks.
Employers are accountable, even if incidents happen online or after hours.
Prevention is cheaper than litigation—clear policies, manager training, and legal support are essential.
What You Can Do Now:
Audit your workplace policies to ensure they’re clear and up to date.
Train managers on handling complaints and setting behavioral expectations.
Document everything—proper records can protect your business.
Get legal support before issues escalate. Lomond Legal offers real-time employment law guidance with no caps or deductibles.
Want a free risk consultation? Contact us to discuss how we can help protect your business.
Final Thoughts
Legal risks in the workplace aren’t going away—if anything, they’re becoming more expensive. Smart employers are proactive, not reactive. By learning from these real-world cases, businesses can avoid lawsuits, protect their reputation, and create a safer work environment.
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