You probably have many concerns as a business owner, whether you worry about fluctuations due to seasonal demand, loans and other financial challenges or finding talent. However, litigation can create additional hardships, especially if the case involves current or former staff members.
From allegations of wage violations to discrimination and sexual harassment, employment litigation can surface for different reasons. It is important to understand how the outcome of a case could affect the future of your firm and take steps to prepare thoroughly, such as gathering evidence and going over all relevant details.
Reasons why employment litigation cases arise
The U.S. Equal Employment Opportunity provides information on employment litigation and different reasons why employees file suit. For example, some take legal action over allegations of discrimination, such as unfair treatment due to their sex, racial background, religious views, disability, age or pregnancy status. Some cases involve allegations of sexual harassment or other types of harassment.
In addition, some cases involve allegations of wage and hour violations, such as denied overtime, unpaid wages or minimum wage violations. Some workers take action as a result of a work-related injury and alleged workplace safety violations.
The impact of employment litigation
Whether you run a major corporation or a small, local business, an employment litigation suit can have disastrous consequences. Aside from legal stress and finding time to handle a difficult case, the financial toll of these cases can create long-term difficulties (and even lead to closure).
Moreover, an unsuccessful outcome could shatter the reputation of your business and jeopardize critical partnerships. If you cannot resolve the issue outside of the courtroom, make sure you are ready to handle the case.