CALIFORNIA – Three former Zurich American Insurance Co. employees in Northern California have been awarded over $80 million in damages after being fired for taking “off-the-record” paid leave. The Sacramento jury ruled in favor of the plaintiffs.
The case began in 2018 with a lawsuit against Zurich American Insurance Co. after the company rejected initial settlement offers of $150,000 for each of the three wrongfully terminated workers. Melinda Brantley, Nicholas Lardie, and Daniel Koos were part of Zurich’s workers’ compensation division in Gold River.
The jury’s verdict included economic and reputational damages and $25 million in punitive damages for each of the three employees. In total, the jury awarded $80,252,412 to the plaintiffs.
The paid leave, known internally as “Omen days” after Chris Omen, the then-assistant vice president, was a central issue in the trial. According to court documents, Omen offered time off based on performance without requiring employees to record it officially. This time off was an incentive for high-performing employees or those meeting certain goals.
In December 2017, shortly before Christmas, the three employees were terminated following a brief company investigation that concluded they had committed “time theft,” resulting in over $100,000 in improper payments over two years. Zurich American argued that these terminations were due to the employees’ incorrect reporting of their time off, despite following the unofficial policy implemented by their supervisor.
The workers’ attorney emphasized that his clients did not wish to prosecute, initially offering to settle the case for $150,000 per plaintiff, which Zurich American rejected. Further attempts to pay for $500,000 each in 2021 and $2 million per plaintiff before the trial were also turned down.
The plaintiffs’ lawyer criticized the short duration of Zurich American’s investigation, which lasted only 71 minutes. He stressed that his client’s treatment reflects poorly on the company, questioning its integrity and commitment to justice for employees and customers.
This case highlights the importance of clear and documented policies within organizations and the need for fair and transparent procedures in human resource management. The resolution favoring the former Zurich American Insurance Co. employees underscores the potential cost to a company for ignoring these practices.
