According to the Hiscox Guide to Employee Lawsuits, U.S. employers face a 10.5% chance of an employee lawsuit in 2016. While you think your business might be safe with only a 10.5% chance at an employee lawsuit, the cost of one of these lawsuits can truly harm a business. The average cost of an employee lawsuit is $160,000! These employment claims can come from a number of areas, including:
· Discrimination (based on race, sex, age, religion, or other factors)
· Sexual Harassment
· Negligent hiring, supervision, promotion, and retention
· Breach of contract
· Emotional distress & mental anguish
· Invasion of privacy
In the latest U.S. Equal Employment Opportunity Commission (EEOC) FY 2018 Performance Report, the EEOC secured approximately $505 million and other relief for over 67,000 victims of discrimination in the workplace! This figure is an increase from FY 2017, where the EEOC secured $398 million for victims of discrimination in litigation or settlements.
Why are employers taking the risk? Simply, many employers do not believe that an expensive suit will happen to them. With many local and state laws being enacted lately that go further than federal laws, it can lead to having policies that are not compliant, which leave the employer at risk.
At myHRcounsel, we believe that a drafting a compliant employee handbook is the first step to avoiding many issues that arise from FMLA, ADA, and potential discrimination charges. We are here to help guide everyone from the average HR professional to the CEO, into making the correct decisions into avoiding potential employment lawsuits. A subscription to myHRcounsel allows you unlimited support and a legal second opinion before you make decisions which could lead to penalties. Before you refuse someone FMLA leave, an ADA accommodation, or terminate an employee, contact the experts at myHRcounsel, where it’s the right answer, faster.