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HR Insights with Ali: Labor Claim Statistics: What You Need to Know


Posted on 4/14/2017 by Ali Oromchian, Esq.
If you were to go to the website of the Equal Employment Opportunity Commission (EEOC), you would see some figures which should be very scary to any small business owner. A review of this EEOC data shows the following:

•  Lawsuits against employers have risen 400 percent in the last 20 years

•  Over 40% of those lawsuits involve private employers with between 15 and 100 employees

•  If a claim goes to trial in state court, employees are more likely to win 67 percent of the time

•  If a claim goes to trial in federal court, employees are more likely to win 63 percent of the time

•  Wrongful termination lawsuits have risen 260 percent in the past 20 years

•  The average out-of- court settlement is approximately $40,000, with an average overall employer cost of $250,000 per lawsuit

The good news is that many employee labor disputes can be prevented and/or addressed quickly by following the proper procedures: documenting employee issues, updating employee handbooks, and educating yourself about changes to overtime, minimum wage, and sick leave regulations can all help to ensure that you are staying on the right side of the law.

Employment disputes can be costly, and can threaten the very survival of your practice. That is why the specialists at HR for Health are here to help give you peace of mind when it comes to your compliance concerns. HR for Health is here to keep you compliant and save you the risk of employee claims down the road. Reach out to us today, and we will be happy to answer any labor claim concerns you may have.
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