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.* * *