Federal Judge Orders Lloyd Industries Inc. & Company Owner to Pay $1.04M to Employees Terminated for Assisting Safety Investigation

Montgomeryville, Pennsylvania (Aug. 23, 2019)—A federal judge in the United States 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, 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’ coworkers suffered the amputation of three fingers.

The company fired one of the employees after OSHA began an on-site investigation and fired the second employee shortly after OSHA issued citations and assessed Lloyd Industries Inc. 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 Inc. and William P. Lloyd post an anti-retaliation notice at the plant immediately and never again violate Section 11(c) of the OSH Act.

“The court recognized that all employees have a federally protected right to speak out against unsafe and unhealthy working conditions, to participate in U.S. Department of Labor investigations and to be compensated if they are terminated in retaliation for exercising those rights,” said Philadelphia Regional Solicitor Oscar L. Hampton III. “The significant punitive damages send a strong message to this employer and others that deliberately violating these laws will not be tolerated.”

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, visit osha.gov.