Keeping a business running smoothly is difficult work. For many business owners, even the smallest bumps in the road can lead to significant damage. Of the many challenges a business owner faces, an employee lawsuit can be one of the most damaging. For this reason, it is important for business owners to work with a skilled legal team and identify if going to trial or paying a settlement will produce the best outcome.
Unfortunately, there is no recipe for success when it comes to defending against an employee lawsuit. Many individuals would like to avoid costly litigation opting to settle a dispute out of court. Although a settlement may help avoid a lengthy and damaging courtroom battle, it may also send the wrong message to employees and the public.
Battling an employee lawsuit in the courtroom can take months or even longer. These lengthy disputes can cost the company a significant amount of money. In addition to being expensive, the process of litigation may require that other employees take time off for depositions and testimonies. This can also cost the company money and added resources. In the event the case makes it to open court, the public may be made aware of issues and complaints that show the company in a poor light. While this may not cost money directly, it may cost the company in other ways like reputation and future business.
For some employers, litigation may actually be in the company's best interests. As unfortunate as it is, some employees file frivolous lawsuits on the belief that companies like to settle. Not only does seeing the case to litigation set an example for employees, but it may also help weed out cases that have no merit.
An employment law attorney can help employers identify whether litigation or settlement is in their best interests. Both options carry their fair share of risks, but fortunately, in most cases, only one option will offer the most benefits and provide a favorable outcome to employers.