What Are the Typical Costs to Defend an Employment Practices Lawsuit?
We often advise our clients that even the most upstanding of businesses should consider purchasing Employment Practices Liability. All it takes is an allegation of wrongdoing from a disgruntled former employee for the costs to mount dramatically.
Imagine, you won the case, you’ve been exonerated, but what did this case cost you to prove you did not act wrongly in your employment decision?
Consider the following typical costs associated with a “no judgment” claim.
- Defense of an EEOC or Administrative charge: $4,000 – $7,000;
Lawsuit Filed Against Your Business
- Answer the complaint and begin discovery: $12,000 – $18,000
- Pretrial filings, preparation, including motions, responses, document analysis and review, case evaluation, settlement and other related matters: $20,000 – $30,000
- Mediation: $8,000 – $12,000
- Trial: $15,000 – $25,000
Total costs range between $69,000 – $107,000 and guess what? You are the WINNER! Only imagine the costs should you come out on the short end.
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