How about a little pop quiz? Which of the following costs approximately $125,000?
- Each guest at your wedding - if you’re Kim & Kanye.
- A monster truck for your kid. Or
- The defense and settlement of the average employment discrimination charge.
The answer, as always, is D - all of the above.
Option C comes to us via a study released by insurance provide Hiscox Ltd., which surveyed discrimination charges filed with the EEOC and its state equivalents1 to come up with that number.
Hiscox’s study has a number of interesting tidbits, including:
- States with the highest employee lawsuit risk - New Mexico (who knew?);
- Median judgment for employee lawsuits that go to trial - $200,000 - in addition to defense costs; and
- Percentage of matters that resulted in a defense and settlement payment - only 19%.
There are also sections addressing common myths and employer mistakes regarding employment litigation and risk management practices.
All and all, it’s a pretty interesting (and easy - 12 pages) read, that starkly illustrates the potential costs of not effectively and proactively attempting to resolve discrimination issues as soon as they arise.