Small businesses exposed to racial, sexual harassment lawsuits
The number one concern of small business HR Departments (small businesses typically employing 10-500 workers) is exposure to workplace litigation risks not being addressed.
According to the Equal Employment Opportunity Commission (EEOC), race and sexual discrimination are the first and second most prevalent forms of workplace discrimination. But few businesses provide training regarding racial and sexual harassment, which opens the door to wrongful termination when employees leave their jobs. Despite the possibility of being sued, small business owners are not addressing the problem head on.
For example, only 23 percent of small businesses provide employment discrimination and/or sexual harassment training (based on a random survey of 300 privately held businesses conducted by Chubb Group of Insurance Companies).
Employee turnover contributes to employer liability by creating potential wrongful-termination cases. Studies show that a company’s legal costs in a wrongful termination lawsuit can run up to $85,000, and that winning plaintiffs receive judgments averaging $500,000.