Employers face potential lawsuits based on risks and the mismanagement of policies. For some employers, they don’t follow the business laws as directed. For others, it is their supervisors and managers who misrepresent their vision for their company by conducting unethical practices. In business, the primary concepts that are addressed are discrimination, sexual harassment, work-related injuries, and wrongful termination.
Reviewing Discrimination Cases
The financial impact of discrimination cases is considerable. These cases apply to race, sexual orientation, religion, and gender. Attorneys representing the employer evaluate strategies that remedy the issues and reduce the financial impact of the case. This could include suggestions about hiring the plaintiff and avoiding repercussions such as negative press for the company.
When these cases come to light, the media exposure could hinder the company’s success. For some companies, it is more suitable to pay settlements out of court to reduce exposure in the press. This exposure on its own could affect the profits earned by the company in the coming years.
Work Related Injuries and Lawsuits
It is more feasible for employers to use their worker’s compensation insurance than to pay settlements through their profits. They are required to maintain these polices if they choose to hire employees. While the repercussion of settling through the policy presents higher premium costs, it could be more cost effective than a trial. In a work-related injury lawsuit, the employee could find a more cost-effective solution through insurance coverage than by funding the settlement through their capital funds.
Sexual Harassment Cases
Sexual harassment cases originate from mismanagement of policy. When the supervisor is at fault in these cases, the most effective strategy is to terminate the supervisor and prevent a hostile environment. For some victims, compensation is demanded. Attorneys representing the employer evaluate these angles to determine if wrongful termination could arise and how to approach a settlement.
Employers evaluate projected costs associated with events that create hostile or unsafe work environments. Their attorney assesses these cases to determine the most financially feasible approach. This could reduce the impact of the case on the company prevent occurrences that devastate the company as a whole. These employers should contact an attorney quickly after the lawsuit is filed.