Employment discrimination and wrongful terminations are one of the most common types of lawsuits filed against small businesses. These violations can sometimes occur due to process mismanagement or lack of understanding of relevant laws, but it's important for business owners to remember that intent doesn't necessarily matter in these cases.
As for the outcome? The average claim amount received by terminated employees is $37,200, according to Lawyers.com, although in many cases, award amounts can range from $5,000 to $80,000. Many of these claims are settled by employers rather than challenged in court to avoid damage to the company’s reputation. Employment Practice Insurance can help defray financial costs but cannot shield you from public embarrassment.