Three former employees of Zurich American Insurance Co. in Northern California were awarded over $80 million in damages by a Sacramento jury after being fired for taking unauthorized paid time off. The lawsuit, filed in 2018, went to trial when settlement offers from the company were declined. The employees, who worked in the workers’ compensation division, were fired after following a supervisor’s policy of taking “off the record” time off as a reward for hard work. The days off, known as “Omen days,” were given by then-Assistant Vice President Chris Omen as a reward for high performance without requiring official PTO requests.
The verdict included damages for economic harm, reputational damages, and $25 million in punitive damages for each of the employees. The three plaintiffs – Melinda Brantley, Nicholas Lardie, and Daniel Koos – were fired days before Christmas 2017 following a brief investigation by the company. Zurich American argued that the employees engaged in “time theft” resulting in more than $100,000 in unearned pay over two years. The company claimed that the employees admitted to underreporting PTO based on their supervisor’s instructions.
Sacramento attorney Lawrance Bohm, representing the plaintiffs, stated that Zurich American maliciously defamed the three employees and refused multiple settlement offers before the trial. Bohm attempted settlements starting at $150,000 per plaintiff, then offered $500,000, and finally $2 million before the trial began in Sacramento Superior Court. Bohm criticized the company for spending a minimal amount of time investigating the allegations before deciding to terminate the employees, pointing out the implications for policyholders who rely on the fairness of Zurich American.
Zurich American spokeswoman Robyn Ziegler declined to comment on the litigation, stating that the company does not discuss ongoing legal matters. The case highlighted the discrepancy between the company’s treatment of its employees and its public image as a provider of insurance coverage to Fortune 500 companies. The lawsuit brought to light the informal rewards program within the Gold River office and the subsequent termination of employees who participated in it. The significant damages awarded to the plaintiffs reflect the jury’s judgment on the wrongful termination of the employees.
The outcome of the trial signals a victory for the employees who were wrongfully fired and a cautionary tale for companies regarding fair treatment of their workers. The case sheds light on the importance of proper investigation procedures and clear communication between employees and management. The damages awarded serve as a deterrent for companies engaging in unjust employment practices and emphasize the need for accountability in the workplace. Ultimately, the verdict is a vindication for the three plaintiffs who stood up against unjust treatment and sought justice through legal recourse.
