According to employment practices liability insurer Hiscox, California, Illinois, Alabama, Mississippi, and the District of Columbia are the top five riskiest places in the country for employee lawsuits. Employers in these states face a larger than average chance of being sued for employment law violations.
Hiscox states that “[a]ccording to the study, on average, a U.S.-based business with at least 10 employees has a 12.5 percent chance of having an employment liability charge filed against it.” Businesses with over 100 employees can expect to defend an employment related claim at least once every three years. Lower risk states for employment litigation include West Virginia, Massachusetts, Michigan, Kentucky and Washington.
The statistics used for this study included only federally-filed claims and discrimination charges brought before the Equal Employment Opportunity Commission. Data on state law claims, such as claims brought pursuant to New Jersey’s Law Against Discrimination, is not routinely collected. Suffice it to say that New Jersey employers, of any size, should have adequate personnel policies, training, and regular compliance audits to minimize the risk of being sued by an employee.