* 80% of those sued feel that the suit is baseless
and unfair
*There are 550 new employment suits a day
* 41% of jury verdicts are against firms with only 15 to 100 employees.
With respect to costs, here are some other statistics:
*Defense costs average over $100,000, and cases
typically last over
two years;
* 67% of tried cases result in a victory for the plaintiff;
* At least 15% of all verdicts are in excess of
one million.
Given these realities, it becomes important to ask:
"What are the telltale signs of employment liability exposure?
What are the signs of a division or company at risk?"
The following are all indicators of employment practices liability,
and should be managed carefully:
Organizational change? Mergers, acquisitions, divestitures,
spin-offs,
consolidation, downsizing, high growth, or reengineering. These
activities can cause layoffs, dramatic changes in career opportunities,
demotions or more selective promotions. These are all fodder for
employment claims, and must be carefully managed.
Significant use of a contingent work force? Overuse
or misuse of a
contingent workforce can cause the court to deem the workforce
"employees", with concomitant rights to monetary and non-monetary
benefits.
Aging baby boomers? Age 40 starts the protected
age class under Federal law. Changes in their employment status
and benefits must be carefully managed;