3 concerns for employers to consider during employment litigation

On Behalf of | Oct 29, 2024 | Business Litigation |

The professionals that an organization hires may end up taking legal action against that company at some point. Workers may allege discrimination, violations of pay regulations and other forms of misconduct in the lawsuits they initiate.

Employers could be at risk of significant legal and financial consequences when employees initiate lawsuits. Both current and former employees may sometimes have grounds to pursue litigation against an employer. Organizations preparing to litigate a dispute with a worker need to carefully assess the three concerns below when deciding how to respond to the pending lawsuit.

The unpredictability of a jury trial

Workers pursuing an employment law claim against a business often select trial by jury. They may then attempt to appeal to the emotions of the jurors in the hopes of securing significant financial compensation or an injunction in their favor. Jurors can be unpredictable, to say the least, and are often more likely to sympathize with an aggrieved employee than with the business accused of wrongdoing.

The risk of bad publicity

Some public relations professionals make the assertion that there is no such thing as bad press. However, in an increasingly connected world, claims about a company mistreating workers can have major implications for the future of the organization. Companies that lose high-profile lawsuits initiated by workers could have a much more difficult time recruiting and retaining the best talent. Potential clients or customers may even avoid doing business with the company because of the reputation damage caused by an employment lawsuit.

The potential for secondary consequences

In some cases, the allegations brought by a worker in a civil lawsuit can trigger secondary consequences for the business. For example, if an employee alleges that a company knowingly miscategorized them as a contractor while treating them as an employee, that could result in tax penalties for the business in addition to whatever consequences the civil courts impose.

Reviewing the nature of the allegations made by a worker with a skilled legal team can help employers determine the best response possible in an employment litigation scenario. In cases involving well-documented claims, companies may sometimes find an out-of-court settlement to be a better option than taking the matter to trial. Leadership at an organization needs to consider the situation carefully to minimize the long-term damage possible in an employment litigation scenario.