Preventing Employee Lawsuits

 
 

employee lawsuits risk managementIn response to the current spate of workplace harassment and discrimination reports, organizations need to take precautions to safeguard their employees and prevent lawsuits, according to the 2017 Hiscox Guide to Employee Lawsuits.

The report notes that this problem is costing companies an average of $160,000 for cases that result in a defense and settlement payment. What’s more, three-quarters of cases did not include any payment by the insurer.

Most federal discrimination laws apply to hiring, firing, training, wages, benefits and promotions. Therefore, companies need to research their state laws and any changes to those laws, as some state discrimination laws are stricter than federal mandates.

Ongoing training should also be mandatory for all employees. In addition, companies need to be alert for discriminatory behavior and be prepared to launch an immediate investigation into any reported problems. They can also help mitigate the impact of employee lawsuits by giving careful consideration to the type of insurance policies they purchase, Hiscox said.

 
Caroline McDonald

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About the Author

Caroline McDonald is a writer and former senior editor of Risk Management.

 
 
 

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