Slay the Dragon; Employees Suing Employers At An Alarming Rate

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HR Outsourcing Company provides day to day HR support and guidance for their many clients, keeping them out of litigation and lawsuits.

Being an employer is outright dangerous thanks to the Dragon. And who is the Dragon, you say? The Dragon is employee lawsuits, which can put your company, large or small, out of business.

So who created the Dragon? Government regulations, laws, and trial lawyers representing employees who take advantage of the system’s weaknesses. From October 1, 1993 through September 30, 1994, the EEOC and related state and local agencies received 156 discrimination complaints. As of May 1, 2003, the EEOC had a backlog of over 100,000 complaints and the average complaint took more than a year to handle. In 2002 over 13,000 complaints of sexual harassment were file with the EEOC. Settlements for cases in 2003 exceeded $50 million. Defense costs were several times this number.

All size employers are targets. Media coverage of employment lawsuits focuses attention on the threat to “deep pockets” businesses. However, statistics prove that small employers are even more vulnerable to employee lawsuits.

Richard Rupp, VP of Risk Mgmt for Calco Insurance Brokers & Agents, Inc., states: “. . .as our 62 Employment Practice Liability Insurance policyholders have proven, small or medium sized businesses are also targets.” Mr. Rupp continues: “Our largest policyholder has 400 employees and our smallest has 13 and in the past two years they have had nineteen employment practices claims. The largest clam settlement to date has been in excess of $250,000. And four out of five pending lawsuits targets small or medium sized businesses.”

What can a business do to protect itself from the Dragon? Hundreds of small and medium sized businesses have turned to EmployShare®, their Dragon Slayer. EmployShare® is a human resource outsourcing company unlike any other. That’s because they actually provide day to day HR support and guidance for their many clients, keeping them out of litigation and lawsuits. The EmployShare® staff consists of highly qualified and trained HR professionals with combined experience exceeding 50 years coupled with national legal professionals specializing in employment law. To date, not one EmployShare® client has suffered financial loss due to an action, recommendation, or instruction given by EmployShare® management pertaining to dealing with clients’ employees.

“We live in a blame-somebody-else society,” states Dan D’Alio, President and CEO of EmployShare, Inc. He goes on to say, “All businesses are targets, with a special focus on the small to medium sized firms, where everyone knows what the owners do and what they earn. Just one discrimination claim can bankrupt a small employer. Our clients know that we will do our best to protect them so long as they keep us informed.”

Mr. D’Alio believes that we are seeing just the tip of the iceberg in the growing number of such lawsuits. And based on the past growth of employee lawsuits, he seems to be right on track. To view an EmployShare Presentation go to

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Leisa Coffman