Guest post by: Stephanie R. Thomas, Ph.D.
According to Fulbright’s 6th Annual Litigation Trends Survey Report, companies are seeing a litigation wave that is expected to continue to swell in 2010. That expectation is based on experiences during 2009, when 83% of respondents reported that new litigation has been commenced against their organizations, up from 79% in 2008. Stephen C. Dillard, head of Fulbright’s global litigation practice, states:
Generally, litigation rises in an economic downturn as regulators tend to step up enforcement, laid-off workers head to court, and companies need to file more suits in order to collect money owed.
Employment litigation is expected to increase in 2010.
The poor economic conditions and increased layoffs, coupled with new laws and expansion of existing laws, are likely to lead to an increase in claims filed. According to Rich Meneghello, the managing partner in the Portland, Oregon office of Fisher & Phillips, “all signs point to the trend [of increased litigation] continuing into 2010, especially as job growth remains stagnant and out-of-work individuals seek rewards through litigation”.
Increased enforcement by the Department of Labor.
Experts are also anticipating an increase in enforcement by the Department of Labor. Secretary Solis said in a release, “In early 2010, the department will launch a national public awareness campaign titled ‘We Can Help’ to inform workers about their rights… We will not rest until the law is followed by every employer, and each worker is treated and compensated fairly.” The Department of Labor is scheduled to receive $13.3 billion in funding for 2010, an increase of $121 million from the previous year. According to a DOL press release, “with these increases, [DOL’s] worker protection agencies will be able to vigorously protect wages and working conditions of the 135 million workers in more than 7.3 million workplaces.”
Additionally, the EEOC is slated to receive $367 million in funding for 2010. This represents an increase of $23 million from the previous year. The increase in funding may lead to more lawsuits alleging discrimination based on age, gender, race, color, national origin, religion, or disability. The EEOC’s proposed regulation to implement the ADA Amendment Act of 2008 would make several significant changes to the definition of ‘disability’, greatly expanding who is covered by the statute’s provisions.
Be proactive to reduce the risk of lawsuits.
While no one can be certain what 2010 will bring, employers should prepare for litigation and for increased enforcement actions. Experts are recommending a proactive approach.
- Employers should have a thorough understanding of what laws and regulations apply, and review their policies and procedures to ensure they are in compliance.
- Internal audits should be conducted to identify any potential problem areas, and corrective action should be taken where appropriate.
- Revisiting documentation and document retention practices is vital; having appropriate documentation can, in some circumstances, prevent litigation, and will be critical should the employer be faced with litigation.
For more information on protecting your company, contact CPEhr, a Human Resources Outsourcing and Professional Employer Organization.
Guest post by Stephanie R. Thomas, Ph.D.
Dr. Thomas heads the Equal Employment Advisory and Litigation Support Division of Minimax Consulting. The Division provides consulting services, dispute resolution support, and expert testimony to Fortune 500 companies, major law firms, and local, state, and federal governments and agencies. The Division specializes in labor and employment issues in both advisory and litigation contexts.
Website: Minimax Consulting
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