Accuchex Blog

Employee Lawsuits: How To Avoid Them

Posted by Leslie Ruhland on Jan 10, 2019 8:44:00 AM
Accuchex Payroll Solutions
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Claims against employers and employee lawsuits are on the rise. And, in some states such as California, the laws tend to favor the employees in many cases. HR and management best practices are needed to avoid and minimize the instances of costly claims and litigation.


No manager knowingly invites a claim against themselves or their company. But oftentimes there are actions, words or behaviors that, while not intended to create issues, often do so nonetheless. Perhaps it's a claim of bullying, or harassment, or even discrimination. While it may not have been intentional or malicious in nature, many times managers can commit illegitimate acts out of ignorance or simple neglect.

So what is a manager to do?

One effective approach is to develop and implement processes along with regular reviews and updates, as needed, for all compliance procedures. Because of the nature of constantly changing labor laws and regulations, these processes should not be done randomly nor relegated to a superficial and cursory overview.

Because of the critical importance of ensuring consistent compliance with labor law changes, an effective tactic is designating one staff member who will be accountable for researching and updating compliance policies. In this way you can ensure that your HR and payroll management practices are consistently up to date and in compliance with any changes.

2018 california labor law guide

California Labor Law and Discrimination

A common complaint from employees is one based on some form of discrimination. Employers and managers are quite aware of sexual harassment now in light of the recent and highly publicized cases. However, there are other forms of discrimination that are not as apparent and are easily committed by managers and supervisors.

For example, employers cannot discriminate based upon race, color, religion, sex, age, disability or national origin when making their hiring decisions. In addition, hiring managers are restricted in the types of questions they can ask in pre-employment interviews. The pre-employment interview process is protected by the same legal restrictions that apply to hiring, as well.

The U.S. Equal Employment Opportunity Commission (EEOC)is the federal agency responsible for enforcing the nation's anti-discrimination laws. The EEOC website provides information that highlights some of the primary areas which can cause potential legal trouble employers and is a good resource for small business owners.

State level employee discrimination claims in California are submitted to the California Department of Fair Employment and Housing (DFEH).  The state's anti-discrimination law covers some smaller employers that are not covered by federal law, according the agency website. Smaller employers in California are defined as businesses with between 5 and 14 employees and, for harassment claims, the laws apply to businesses with one or more employees.

Employee Lawsuits Are Costly

Regardless of whether an employee complaint or lawsuit is decided in favor of an employer or employer, the related costs for the employer can be damaging and even crippling. Here's an overview of the costs of employee lawsuits:




Your Partner for HR and Workplace Management

Accurate and timely management and HR compliance practices are required for HR professionals in every business. Managing all of this can be challenging, but you do have options.

Accuchex is a reputable workforce management services provider and can not only assist you with the burden of your ongoing compliance demands, but can potentially prove to be a more cost-effective solution, as well.

Click the button below to learn what you need to know about labor law in California. For more immediate information, feel free to call Accuchex Payroll Management Services at 877-422-2824.





Topics: harassment, discrimination, sexual harassment, workplace bullying, lawsuits

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