Should You Settle if You’re Being Sued by an Employee for Discrimination?

Many companies that face employee discrimination cases are unsure what the next step is and whether or not they should settle.  Almost 90% of employment discrimination cases agree outside of court, meaning that companies make a payout or offer some other benefit to the worker, and then the issue is dropped, and they move on.

Some may see this as an admission of guilt, and many companies don’t want that on their record.

If it Goes to Court: There’s a 10 out of 11 Chance You’ll Win

If you decide to take this to court to clear your name, there’s a good chance you’ll win your case.  Unfortunately, if you lose the effects can be devastating.

Losing a public lawsuit for employee discrimination puts a dark mark on your company and makes it less likely that people will apply to work for you, or customers will want to buy from you.

Public Lawsuits Can Damage Company Reputation

Your company’s reputation will decide how much money it makes and how much it can grow and change throughout the years.  If your company gets a public lawsuit against it, where people can read about what your business may or may not have done, this can ruin your public image.

This, in turn, may lead to fewer purchases, some boycotts, and other issues that can make it difficult for your business to get back on its feet.  This can be made worse if your business is found in the wrong and the workers win the discrimination cases.

If You Find Evidence, Your Company Was in the Wrong

The largest thing you should include in your settlement is a statement saying that your company will make changes to accommodate future employees better.  This goes doubly true if your company is in the wrong and you realize that through this lawsuit.

Settling will give you the chance to get out of the case and be free of the trouble that comes with it, and begin to work on repairing your company and creating a more open space for all workers.

If You Want To Save Yourself from Future Lawsuits

Lawsuits are serious business, and if you want to avoid them, you must do what you can to minimize how many your business faces.

If your company gets in a lawsuit and loses, many may smell blood in the water, and you could face either a class action lawsuit or multiple other claims of employee discrimination which can build up into cases you don’t want to have to face.  Settling gets things over with quickly so you can move on.

Protecting Your Company from Lawsuits Includes Changing Company Behavior

Although it would be fantastic if you could rest easy knowing your company hasn’t done anything wrong: you could be leaving your company at risk if you’re not careful about who you do business with and what your policies are.

Hire the best workers for your positions, be aware of personal biases: and make changes in your company that will save you from future lawsuits.