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How Much Does it Cost to Defend an Employment Lawsuit?

An employment lawsuit can defame your company’s reputation. It is a stark reality that defending any employment lawsuit is an expensive affair. Workplace lawsuits are quite common. A recent study found that 10% of small to medium-sized businesses face employment lawsuits that cost them several thousand dollars. If you own a company and get served an employment lawsuit, you must hire an employer defense attorney to defend your case.

Circumstances That Lead to an Employment Lawsuit

A potential employee might choose to sue a company if they feel they were mistreated during training or the hiring process itself. On the other hand, current employees of a company tend to file for discrimination for various reasons such as discrimination due to wages, ethnicity, promotion, and even benefits. In other cases, lawsuits can occur due to a change in legislation, such as salary thresholds. An employee may also choose to file charges against the company they work for if someone within the firm discriminates against them, and their immediate superiors did nothing to stop it. Even vendors and customers can be included in the lawsuit. In some cases, employees will file an employment lawsuit when someone inappropriately behaves with them or treats them in a biased manner over their sexual preferences.

In sum, an employee can file a lawsuit against the company he or she works for based on the following grounds:

  • Wrongful termination
  • Discrimination
  • Sexual discrimination
  • Whistleblower
  • Disabilities
  • Emotional distress
  • Retaliation
  • Breach of contract
  • Negligent supervision
  • Invasion of privacy

Who Can File an Employment Lawsuit?

Any establishment that has 15 or more employees is subject to discrimination laws. Florida is the only state that is subject to discrimination laws if they have 4 or more employees. Any employee who thinks they have been ill-treated at the workplace can first file a complaint with HR. If the employer does not respond to these charges, the employee may file a lawsuit. All employers are obligated to follow state equal pay laws for both men and women. Therefore, if any worker feels they have been discriminated against or fear any retaliation for pointing out company policies or supporting another discriminated employee, they may file charges through the EEOC – Equal Employment Opportunity Commission.

How Much Does an Employment Lawsuit Cost?

According to studies, most charges lead to defense and settlement costs that amount to about $150,000. In a majority of cases, the average employers’ self-insured deductible is around $50,000. It means most companies end up paying out of pocket for the remaining $100,000.

Employment lawsuits can be overwhelming and time-consuming. Many of these cases can take as long as a few years to resolve. Retaliation tends to account for more than 50% of all employment lawsuit charges, Followed by charges based on discrimination due to race, disability, and gender.

The best way to prevent employment lawsuits is to create an employee-friendly work environment wherein all workers get treated equally. If your company gets served an employment lawsuit, all is not lost. Contact a reliable and trustworthy employment defense law firm.

Here are the top 10 Law Firms in Atlanta, GA for Employment Defense

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