A $10 million legal settlement by UCLA (see LA Times) around a whistleblowing-retaliation case and a discrimination case should serve as a reminder as to why it is important for nonprofit boards to keep their Directors & Officers insurance policy as well have in place current formal policies around whistleblowing and discrimination.
But whether or not your board has indeed discussed and put into place, policies around whistleblowing (see Sarbanes-Oxley pertinent to nonprofits) the following laws apply in which a board and its members can be held wholly (all together) and severally (individually) liable:
•Equal Pay Act of 1963—prohibits wage discrimination on basis of sex
•Title VII—Civil Rights Act of 1964, 72, 91—Prohibits discrimination
•Pregnancy Discrimination Act of 1978-Prohibits employee benefits discrimination on basis of pregnancy
•Age Discrimination in Employment 1967—Prohibits discrimination in the conditions of employment on basis of race, color, sex, religion, or national origin—also covers sexual harassment
•Older Workers Benefit Protection Act 1990—Prohibits benefit plan discrimination based on age
•Immigration Reform & Control Act of 1986—Prohibits discrimination based on citizenship or national origin (hiring illegal aliens prohibited)
•Americans With Disabilities Act of 1991—Prohibits discrimination on basis of physical or mental handicap
This list may not be totally update so nonprofit boards may want to ask for additional guidance from their insurers and attorneys.
Failure to consider these issues can prove costly.