The employment discrimination lawsuits are also quite expensive from the employer point of view. Such lawsuits distract the organization from their goals and result in employees losing productivity as crucial resources are diverted towards document collection, internal investigations, and lawsuits fighting. Such lawsuits also result in loss of employee morale and loss of employer’s reputation as a preferred employer among potential employees. Employer can also face problems with employee retention. In case the judgment of lawsuits goes against the employer then in such situation the employer will have to pay the compensation as instructed by the court as well as pay the attorney’s fees.
Businesses can face employment discrimination lawsuits that are filed by the employees and ignoring such lawsuits can cause harm to the company both financially and reputation wise. Thus it is necessary for the companies to create an atmosphere where every employee is judged by the level of his/her competence, skills, knowledge etc and not on his/her age, gender, nationality, religion etc. The companies must adopt stringent rules and regulations for the prevention of discrimination in the workplace. According to the Equal Employment Opportunity Commission (EEOC) the highest number of employment discrimination charges was filed in the fiscal year ending on September 30, 2010. The figures totally indicate a steady increase in the number of discrimination lawsuits filing due to poor economic scenario, job losses and much more.
The employment discrimination lawsuits are also quite expensive from the employer point of view. Such lawsuits distract the organization from their goals and result in employees losing productivity as crucial resources are diverted towards document collection, internal investigations, and lawsuits fighting. Such lawsuits also result in loss of employee morale and loss of employer’s reputation as a preferred employer among potential employees. Employer can also face problems with employee retention. In case the judgment of lawsuits goes against the employer then in such situation the employer will have to pay the compensation as instructed by the court as well as pay the attorney’s fees.
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