Employers in the Tri-State Area can breathe a sigh of relief. Based on data compiled by Hiscox, an international small business insurance company, New York, New Jersey and Connecticut are not at the top of the list of the riskiest states for employee lawsuits.
Based on the study, U.S. businesses with at least 10 employees have a 12.5 percent chance to have an employment liability lawsuit filed against them. However, there were multiple states with a much higher probability than that.
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The top five areas went to California (42 percent above the national average), Washington D.C. (32 percent above), Illinois (26 percent above) Alabama (25 percent above) and Mississippi (19 percent above). NJ, NY and CT fell somewhere in the middle. Other states making the top of the list included Arizona and Georgia. Lower risk states were West Virginia, Michigan, Massachusetts, Washington and Kentucky.
Bert Spunburg, senior vice president for Executive Risk at Hiscox, pointed out that state laws have a large impact on the risk of an employee bringing suits against their employers. He added that California’s employee-friendly laws could be part of the reason why the state is so risky.
According to Mark Ogden, a managing partner for Littler Mendelson who was quoted in the report, employment liability charges are capped in federal cases, but are without a ceiling in many states. This means that not only are the states more likely to have a case brought against them, but they are also more likely to receive a highly unfavorable or catastrophic verdict.
Regardless of whether your state is considered at risk for lawsuits, employers should train their staff to adequately protect against potential discrimination, harassment or retaliation. These are among the most common issues which lead to lawsuits.
If you or someone you know has been discriminated against or treated unfairly at work, contact the experienced employment law attorneys at Team Law today for a free consultation. Call 800-Team-Law.