GlossaryEmployment Litigation FinanceDisparate Treatment

Disparate Treatment

The most direct form of employment discrimination, involving intentional adverse action against an individual or group because of a protected characteristic. Disparate treatment claims are typically proven through direct evidence of discriminatory intent or circumstantial evidence under the McDonnell Douglas burden-shifting framework. For funders, individual disparate treatment cases rarely meet minimum funding thresholds alone, but systematic disparate treatment across a workforce can support a pattern-or-practice theory with much larger damages exposure.

Why It Matters in Underwriting

Individual disparate treatment claims rarely meet minimum funding thresholds on their own, so funders look specifically for evidence that isolated incidents reflect a broader pattern — internal communications, comparator data across multiple employees, prior complaints — that can support a pattern-or-practice theory with materially larger exposure. Direct evidence of discriminatory intent, when it exists, is weighted heavily because it removes the McDonnell Douglas burden-shifting uncertainty that otherwise clouds outcome modeling.

Employment Litigation Finance

Key terms in employment litigation finance — FLSA class actions, discrimination claims, and workforce dispute funding.

Employment Litigation Finance
Discuss a matter involving disparate treatment.
Confidential review from our institutional underwriting team.