What Risks Do Employers Face?

The number of employee-related lawsuits is rising every year.

In 2000, the average lawsuit cost a company $350,000, including $104,000 in legal defense expenses.^a

Even small employers are at risk. Many states and municipalities have enacted employment laws that are broader than federal laws, and that apply to employers with fewer than 15 employees.

What Would My Exposure Be If An Employee Sued Me?

Awards exceed $1 million in 20% of all employment cases.^b

Punitive damages are awarded in 26% of racial discrimination cases and 41% of retaliation cases. The average punitive award is $194,000; $222,000 for racial discrimination claims.^c

The average judgment in sexual harassment cases is about $250,000.^d

How Would Flexpoint help me avoid liability?

Distribution of an employee handbook is a critical tool in avoiding lawsuits.

Flexpoint’s online system ensures 24/7 access to your current handbook by all employees. No need to rely on a manager distributing paper copies and updates.

You will always have an up-to-date handbook. Changes to the law are sent out automatically as global updates.

Ensure blanket distribution and completion of mandatory forms – at will employment, arbitration, consent forms, and others.

                                                                                             
^a Data excerpted from the Tillinghast D&O Liability Survey Report, 2000
^b “A Shield from Workplace Wars”, John Mello, CFO Magazine, 5/98
^c “Site to Employment Related Liability”, Ginny Peterson, Esq., The Indiana Lawyer, 3/17/99
^d “Labor of Love”, Jennifer Hamilton, Connecticut Law Letter, 1999