Some of the Most Common Reasons Employees Sue Their Employers

These days, employment-related lawsuits are becoming common. Whether employers are sued for wrongful termination, inaccurate advice, or negligent acts, the average cost of defending such a lawsuit is around $125,000 to $250,000.

While not every employment lawsuit is preventable, you can reduce the risk of legal proceedings by understanding the typical reasons why employees sue their employers. Let's have a look at them.

Top 10 Reasons Employees Sue Their Employers

1. My Employer Doesn't Pay Attention

   Ignoring work-related problems can lead to lawsuits. Employees may have their own requirements concerning employment, which employers must hear and do the needful. If employers don't have time, they can have a lawyer, union organizer, or supervisor to listen and respond to employees' issues related to harassment, the Americans with Disabilities Act, the Family and Medical Leave Act, etc.

2. I Don't Feel Like I am Not Performing Well

   Performance issues not only impact production but also can result in litigation when untrained or inexperienced managers are unable to identify poor-performing employees and solve their issues. Training supervisors and managers can prevent these by engaging in friendly conversations with employees to identify and solve their issues.

3. My Colleagues Gossiped About Me After I Quit

   Spreading rumors about former employees is not a good practice, and they will learn about such things from their fellow mates or on social media. Employers can limit discussion about formal employees in the workplace while keeping current employees aware of some state, federal, and local laws that impact employee speech.

4. My Employer Gives Bad Conduct About Me to Prospective Employers

   Saying bad things or giving negative references about your formal employee to their prospective employer can lead to a lawsuit, even if the employee is no longer working with you. While some employers indulge in such activities, other shrewd employers assist their formal employees in getting a new job by providing crucial details, including dates of employment, designation and responsibilities, and last rate of pay (if legally permitted).

5. My Employer Shows Partiality

   An employer must treat all employees equally, regardless of age, nationality, disability, sex, or race. Punishing one group of employees and not punishing the other group for the same activity or mistake can lead to discrimination claims. Employers can prevent this by strictly applying disciplinary procedures and policies for all employees equally.

6. My Colleagues' Ruthless Behavior Made Me Quit the Job

   Employers are not legally required to provide a civil and polite work environment for employees. However, employees want them to do so to avoid claims resulting from abusing or ill-treating an employee by other employees for their race or personality. In the future, employers can think about having a positive and friendly workplace for employees.

7. My Employer Is so Mean

   Employees seeking revenge on an unkind employer often want to file an employment lawsuit, so they may meet an employment attorney to file a case. Employers must pay attention to employee morale and identify and train supervisors and managers who tend to spoil the employee-employer relationship.

8. My Boss Retaliated Against Me for Complaining

   Counterattacking an employee for complaining about illegal activities can lead to an employment lawsuit. Employers must create robust complaint reporting and investigation policies to prevent employees from retaliation while ensuring managers are well-versed in the complaint and investigation process.

9. I Don't Know Why I Got Fired

   Terminating employees without a valid reason may force them to file a lawsuit against their employer for wrongful termination, discrimination, or illegal motivation. Employers can eliminate such issues by keeping the reason for termination private and providing employees with an excuse if anyone questions about the termination.

10. I Was Discriminated

    Showing discrimination to an employee or a particular group of employees can result in discrimination lawsuits. Employers can avoid this by maintaining equal employment opportunity policies, treating employees equally in all work actions, and accurately documenting employee accomplishments and performance problems.

    The best way to prevent employment-related lawsuits is to create a great company culture where your employees feel safe, esteemed, protected, and nurtured. Take every opportunity to honor them for their work while keeping them comfortable.

Attract and Retain More Employees with Knight Insurance

At Knight Insurance Services, for over 100 years, we have been offering a cost-effective, yet best-in-class employee benefits package that includes everything your employees need for a happy lifestyle. Contact our insurance experts today to get the right benefits plan customized to your business and employees' needs.