Because putting measures in place to prevent discrimination can be a lot of work, many employers don’t take the time to address this factor in their businesses. However, when a lawsuit is pending or a discrimination claim has been filed, you’re no longer in the preventative stages, and litigation can cost you dearly.
Reasons to Be Proactive
An article in thebalance.com points out the costs that are often involved with employment discrimination litigation. Their figures are based on 2010 statistics.
The EEOC acquired more than $404 million in damages for individuals in discrimination claims in 2010. When employees won the lawsuits, average costs ran the employers about $250,000 in defense fees, and jury verdicts averaged $200,000.
Employers also experienced financial losses through:
- Lost production time due to staff involvement in rounding up and preparing documents, participating in an internal investigation and working to fight the claim
- Lawsuit pressures lowering employee morale
- The business’s potential loss of reputation and its effect on being able to recruit desirable employees
- Attorney fees that surpassed settlement costs, especially if going through a trial
Laws require employees to complain to their employers before becoming eligible to file a claim, and this is to the employer’s advantage. It provides employers with the opportunity to seek legal advice and rectify the situation before it turns into a claim or lawsuit.
We live in litigious times, and taking measures to prevent lawsuits along with resolving employment discrimination complaints are simply part of doing business. Businesses who want to stay in business plan ahead. They become proactively involved with devising policies and putting business practices in place that create diversity in the workplace and prohibit discrimination.
Stephen Hans & Associates has several decades of employment law litigation experience. We can help you take proactive measures. Discuss your discrimination concerns with us and find out how we can help.