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Five Tips to Shield Your Business From Employee Lawsuits

Take these concrete steps to protect your organization

The Equal Employment Opportunity Commission (EEOC) enforces federal laws related to workplace discrimination. In many cases, the EEOC rules definitively on an employee’s wrongful-termination or harassment complaint. But even when the EEOC does not file charges, the company may not necessarily be in the clear.

That’s confusing for many people. The EEOC has 180 days from the date a claim is filed to investigate that claim. If the EEOC decides not to litigate, the charging party will receive a Notice of Right to Sue. This typically signals the end of the EEOC’s investigation and involvement, but the business is still at risk of being sued by the charging party, who has 90 days to file a lawsuit in federal court.

While claims of discrimination, harassment, and retaliation are nothing new, the costs associated with them are soaring. According to the EEOC, the average total claim cost in 2017 was $460,000. Settlement payments averaged $160,000 while defense costs averaged $300,000.

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