Shared by Employers Advisor Network (slightly modified), here are a few reasons why employers lose when taken to court by an employee. Good to be aware of and think about these things:
1. The Jury Pool- It is likely that the jurors have never held an Executive or Managerial position. As a result, the jury box generally consists of people who will judge your company from the perspective of the employee rather than the employer. Many employees tend to have an "all bosses are villains and all employees are victims" mentality.
2. Employers focus on justifying rather than taking responsibility. When we make a mistake we should admit it and try our best to render a solution.
3. Failure to document- Judges and juries expect to see proof. If you ever have any question about an employee you should document everything. Poor performance, failure to comply, attempts to work it out, etc. This will go a long ways in swinging the votes.
4. Inconsistency- Do your best to treat all employees the same. Inconsistency in how you have treated people within your company will create distrust.
5. Somebody gets caught lying- Employers will often ignore, bury, or deny conduct that they consider to be potentially damaging. If the plaintiff finds out about a lie it could be potentially devastating. It is best to get everything out in the open and work from there.
6. They never received or signed an agreement- Failure to create and retain and employee/employer agreement can lead to potential problems. An agreement should set forth rules of conduct, expectations, pay, hiring/firing procedures, disciplinary actions, etc. and should be retained on file for all employees and former employees.
7. Being overly agressive- When presenting a case it is best to present both sides of the issue fairly rather than attacking the other side from the get-go.
The fact is, there are many more ways to lose at trial. Employers are the underdog. Even if you win, you are losing a substantial amount of time and money in defense. If you lose a case, it can be real big. The best defense is to have strategies and tools in place designed to prevent the filing of claims in the first place. Purchasing Employment Practices Liability Insurance is a great way of transferring this risk. Most insurance carriers that sell this insurance will make recommendations and help implement proper strategy. A litigious society puts all businesses big or small at risk.
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