From cases involving wrongful termination and unfair trade secrets to non-compete agreements, unfair competition and sexual harassment, firms can end up in court for various reasons. Additionally, it is particularly important for business owners to take a careful look at unlawful discrimination, which takes many forms, and understand how a discrimination claim could impact their company.
Regrettably, some employees and former staff members falsely accuse employers of discrimination, and these false allegations can have devastating consequences. Aside from financial penalties, a discrimination case could tarnish a business’s image.
Statistics on employment discrimination
Data presented by the Equal Employment Opportunity Commission sheds light on the prevalence of employment discrimination complaints. According to the EEOC, the agency received over 61,000 discrimination charge filings throughout fiscal year 2021. Employers should note that this excludes charges filed with local and state agencies.
In fiscal year 2021, the EEOC received over 22,800 charge filings for disability discrimination, more than 20,900 for racial discrimination, over 18,700 for sex-based discrimination and more than 12,900 for age discrimination. Sometimes, employees file charges for more than one type of discrimination.
The effects of an employment discrimination case
When an employment discrimination case arises, the allegations could affect a firm in different ways. Even if a business owner can prove that discrimination did not take place, the allegations could cause irreparable damage to their firm’s reputation. Discrimination complaints can inspire other workers to take action and result in massive financial penalties. These cases can also hurt business performance by jeopardizing employee morale.
When discrimination complaints come up, business owners must review the details carefully, collect as much evidence as possible and figure out the best path forward.
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