Employment lawsuits and claims are the biggest and most time-consuming losses that a corporation will face. The average employment lawsuit will cost a company $200,000; this is made up of $80,000 for the employer’s attorneys’ fees, $80,000 for the employee’s attorneys’ fees, and $40,000 in settlement to the employee.
Is your company at risk for lawsuits?
During the last five years alone, 60% of employers have faced an employment lawsuit. Every year the EEOC secures approximately $404 million from U.S employers. So, yes, your company is at risk for lawsuits.
The Cost of Defending an Employee’s Lawsuit
The average cost of out of court settlements for employee lawsuits is approximately $40,000. Approximately 10% of discrimination and wrongful termination cases will have a $1 million settlement. The majority of employment cases, when taken to court, are ruled in the employee’s favour.
Litigation costs are getting more expensive. In 2000, the average cost of litigation was $66 million, in 2008 it rose 73% to $115 million. This means that the cost of litigation rises approximately 9% a year.
Types of Employment Lawsuits
It is important to know the most common employment claims so you can protect your company against them.
- Sexual harassment
- Wrongful termination
- Breach of contract
- Negligent hiring, supervision, promotion, and retention
- Invasion of privacy
- Emotional distress and mental anguish
Retaliation has become the top reasons for discrimination lawsuits, higher than even racial discrimination. Contact Nakase Accident Lawyers & Employment Attorneys today to safeguard your company from employment claims.