The following adjectives describe how employers feel when receiving notice of an employee’s lawsuit: Angry, pissed off, frustrating, or OMG this is going to be expensive! Then, the employer will go research the internet to see how money it costs to defend an employee’s lawsuit. At the end of this article, learn how to find the best employer defense attorney to protect your company.
Defending an employment lawsuit is very costly with most lawyers. Defending an employment lawsuit up to discovery and a motion for summary judgment can cost up to $125,000 for an employer. If you lose the summary judgment, expect to spend up to $250,000 to take the case to trial.
Most employers will make the wise decision to keep an employee instead of risking a legal bill of up to $250,000. Also, if you have a history of settling each employment claim, you risk looking like an easy target for every ex-employee.
You are limiting the exposure to wrongful termination lawsuits by offering severance compensation for a release of claims. A severance packet should be considered for employees who are fired unless they are fired for intentional and egregious misconduct. If you need to fire an employee, consider offering a severance package for a waiver releasing any claims and legal recourse.
Employee’s Attorney’s Fees
Many employees hire their lawyers on a contingency basis, which means they will not pay any legal fees unless their lawyer wins the case. A contingent fee agreement is a no-risk proposition for your employees.
However, if their attorney wins the case, you will be on the hook for your employee’s legal fees. Instead of just paying a settlement amount, you now have to pay an additional $80,000 or more in legal fees too!
Your employee’s legal fees consist of two components: attorney fees and costs.
Attorney fees are the cost of counsel or the work an attorney does on behalf of their client. Attorney’s fee can be up to $750 per hour, depending on the attorney. Litigation can drag on for months, creating a very steep bill.
Costs are the additional expenses that occur during a legal case: filing fees, postage and shipping, copying fees, and transcripts. These expenses can quickly add up if the case drags on for a long time.
How To Protect Your Business From Employee Lawsuits
California is one of the best states in the country for protecting employee rights. Laws protecting employees ensure fairness to all parties, but it also means that opportunistic employees and their lawyers will seek to exploit your company for an “easy” payday.
It is important to have protections to protect your business from opportunistic lawsuits. Unfortunately, the more successful your business is, the more lawsuits you will attract.
Even if you have done nothing wrong and there is a mountain of proof of your innocence, it is often in your best interests to settle rather than run up legal fees. If you settle an employee’s claim and end up paying $10,000, this is a much better result than paying up to $100,000 if you lose. You will be paying for the settlement, your legal fees, and your employee’s legal fees.
It is essential to have strict company policies in check to minimize legitimate discrimination cases. It is also necessary to have a strict company policy for terminating employees. Also, employers should consider the benefit of offering a generous severance package in exchange for releasing your company from legal claims.
How To Find the Best Employer Defense Lawyers
One of the most important ways to safeguard your business from employment lawsuits is to hire a skilled employment lawyer. A labor law attorney will help you set up employee handbooks, policies, and documents to ensure your company is less likely to violate employment law, and therefore, less likely to be sued. Your attorney will also advise you in situations that may turn into a lawsuit or if an employee is threatening a lawsuit. If you do fall victim to a lawsuit, though, retain an employers right attorney to litigate and defend against the lawsuit aggressively. The employment defense lawyer should make great efforts to resolve the employee’s lawsuit as quickly as possible to minimize the financial burden on you; meanwhile, that employment defense attorney aggressively prepares to win the case should it goes to a jury trial. Finally, find employer defense lawyers with a Master of Laws in Labor Law.
To find the best attorney to protect your company, search Google: employer defense lawyers with Master of Laws in Labor Law.