Employees to Receive $1 Million in Safety Inspection Whistleblower Case

Source: alekseystr - 123RF

Montgomeryville, PA – A federal judge in the U.S. District Court for the Eastern District of Pennsylvania has awarded $1,047,399 in lost wages and punitive damages to two former employees of a Montgomeryville, Pennsylvania, fire protection equipment manufacturer, after a jury found the company and its owner fired them in retaliation for their participation in a federal safety investigation.

On April 2, 2019, a jury determined that Lloyd Industries Inc. and owner, William P. Lloyd, illegally fired the employees because they participated in a 2014 inspection by the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA).

The inspection followed an incident in which one of the employees’ co-workers suffered the amputation of three fingers.

The company fired one of the employees after OSHA began an onsite investigation, and fired the second employee shortly after OSHA issued citations, and assessed Lloyd Industries with penalties.

The acts of retaliation violated Section 11(c) of the Occupational Safety and Health Act (OSH Act). The court’s award of $500,000 in punitive damages, is the largest punitive award ever under Section 11(c) of the OSH Act. The court justified the award in light of the defendants’ “deliberative flouting of the act.”

In addition to damages, the judge awarded the former employees $547,399 in front and back pay, prejudgment interest, and additional amounts to compensate for the adverse tax consequences of their receiving a large, one-time payment.

The judge also ordered that Lloyd Industries and William P. Lloyd post an anti-retaliation notice at the plant immediately, and never again violate Section 11(c) of the OSH Act.

OSHA enforces the whistleblower provisions of more than 20 whistleblower statutes protecting employees who report violations of various airline, commercial motor carrier, consumer product, environmental, financial reform, food safety, motor vehicle safety, healthcare reform, nuclear, pipeline, public transportation agency, railroad, maritime, and securities laws.

For more information on whistleblower protections, visit OSHA’s Whistleblower Protection Programs webpage.