Benchmark: Employee Lawsuits
We asked 195 CEOs of small companies to tell us about their experiences with employee lawsuits. Almost half had been sued. Legal or settlement costs averaged in excess of $40,000. But perhaps even more disturbing was that even the majority of those who said they hadn't been sued admitted that fear of litigation affects how they manage employees.* * *
To what extent does fear of employee litigation affect how you manage your business?
A great deal 13.4%
Not at all 22.7%
Have you ever been sued by an employee?
If so, what was the charge?
Wrongful termination 33%
Age discrimination 12.3%
Racial discrimination 9%
Discrimination (unspecified) 9%
Sexual discrimination 5.6%
Sexual harassment 4.4%
Other 26.7%* * *
Source: Survey by TEC, in San Diego, and Inc. magazine, November 1995.* * *
DONNA FENN | Inc.com Contributing Editor
Donna Fenn is the author of Upstarts! How GenY Entrepreneurs Are Rocking the World of Business and 8 Ways You Can Profit From Their Success, an exploration of the ways Gen Y is changing the entrepreneurial landscape.