Are You at Risk?
With the trend of an increasingly litigious society, legislative compliance poses a greater risk more than ever. More and more often, state and federal courts rule in favor of employees who feel wronged, and court rulings and settlements can cost your business hundreds of thousands of dollars.
- Negligent hiring practices can create the perfect storm for lawsuits. The U.S Equal Employment Opportunity Commission (EEOC) received 88,778 private sector discrimination charges in 2014. In 2014, the EEOC recovered $296.1 million for victims of employment discrimination.
- In 2014, EEOC received nearly 7,000 claims for sexual harassment in the workplace. Over 53% of claims were determined to have reasonable cause. The EEOC reported that an estimated $35 million was awarded to claimants in 2014.
- Three out of five companies are sued by former employees every year—and more than 450 companies are hit with employment lawsuits every day.
- 50% of all companies defending employment lawsuits spent more than $50,000, and 33% spent more than $100,000, in litigation costs.
- The average jury award in an employment lawsuit exceeds $250,000, and 15% of all verdicts exceed $1 Million.
- Civic penalties for Occupational Safety and Health Administration (OSHA) violations can run from $5,000 to $70,000 for each infraction. Negligence to address violations can rack up to thousands of dollars in penalties per day until corrected.
- Recordkeeping compliance errors create massive legal risks that are quite costly to employers. For example, incomplete or inaccurate I‐9 Forms can cost up to $1,100 in fines and penalties per form; multiplied by your number of employees, the cost can become unsurmountable.