From Lawsuits to Loyalty: Turning Workplace Risks Into Workplace Wins
September 2025
How pallet manufacturers and recyclers can cut claims with smart practices and the right coverage.
Running a pallet manufacturing or recycling business means handling important things like hiring new workers, tracking hours, paying wages, and keeping the workplace safe. If these tasks are not done properly, they can lead to employee lawsuits. Let’s explore common causes of such lawsuits, how to prevent them, what type of insurance can help, and how safety ties into reducing legal risks.
Common Employment Practices That Can Trigger Lawsuits
Wrongful Termination: If an employer fires someone unfairly—for example, because of their race, gender, age, disability, or for reporting something illegal—this can lead to a lawsuit. In California, workers can also sue for “constructive wrongful termination,” which means being forced to quit because working conditions were made unbearable.
Wage and Hour Complaints: These involve claims like unpaid overtime, not being given breaks, or not being paid correctly under state law. In California, the Private Attorneys General Act (PAGA) allows employees to file claims on behalf of themselves and others. In 2023, more than 5,000 PAGA complaints were filed—a 20% increase over 2022. Washington State has also seen a jump in wage-and-hour class-action lawsuits, especially over miscalculating overtime and regular pay rates.
Discrimination: Discrimination charges are growing on the West Coast. In California during 2024, the EEOC received over 2,500 charges for retaliation, nearly 1,800 for sex discrimination, more than 1,700 for disability, and more than 1,600 for race discrimination. Employees also file complaints when they’re treated unfairly because of other protected traits like age or national origin.
Hostile Work Environment: Harassment such as bullying, offensive jokes, threats, or intimidation creates a hostile work environment. This can lead to lawsuits for harassment or retaliation. A safe workplace isn’t just good for morale—it’s the best defense against lawsuits.
“A safe workplace isn’t just good for morale—it’s the best defense against lawsuits.”