Whether your company employs 15 staff members or your firm has hundreds of employees, it is imperative to understand the consequences that can arise from a discrimination complaint. As a business owner, a discrimination case could wreak havoc in various ways. Aside from the financial toll of a lawsuit involving discrimination, an unfavorable outcome could also shatter the reputation of your firm.
Employment discrimination takes different forms, whether a case involves allegations of racial discrimination or mistreatment based upon an employee’s sex, religious beliefs or age. In fact, discrimination cases sometimes involve job applicants alleging that violations occurred during the hiring process.
The financial toll of discrimination lawsuits
The U.S. Equal Employment Opportunity Commission goes over limits on punitive and compensatory damages that employees can recover as a result of suing a business over employment discrimination. It is important to understand that these limits depend on the size of a firm. An employer with 15-100 employees could face up to $50,000 in damages, while a firm with over 500 employees could face up to $300,000 in damages.
Depending on the details of a case, an employer could have to pay for legal costs, emotional harm, back pay and out-of-pocket expenses.
Other consequences of a discrimination suit
Aside from financial penalties, you could have to take additional measures to address and prevent discrimination. You could lose crucial business partners and business could suffer due to the fallout of a discrimination case. It is vital to understand the potential repercussions associated with discrimination cases, carefully go over the details of these allegations and prepare for court if litigation is unavoidable.