How Much Can a Wrongful Termination Suit Cost an Employer?

Wrongful Termination Lawsuit

Roy Bostock may have wanted to think twice before firing Carol Bartz over the phone.

An article by Meridith Levinson for CIO reports on some of the costs employers can expect to pay for wrongfully terminating an employee. Levinson writes:

Rebecca Heyman, a human capital consultant with HR outsourcing company TriNet, notes that filing a discrimination claim with a local EEOC agency as part of a wrongful termination claim costs nothing for an employee, but causes significant disruption to the employer’s business. “The employer has to respond to the employee’s allegations. They often have to work with an attorney to prepare a response to the claim. That can be costly,” she says.

How costly? Mimi Moore, a partner in the labor and employment practice with Bryan Cave LLP, says that each legal claim an employee brings against an employer in court could cost the company between $50,000 and $250,000 in legal fees and potential settlement payouts.

Levinson goes on to discuss some of the common mistakes employers make when firing employees. Click on the link below to read the entire article.

Read More: How to Fire People the Right Way

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Article Published October 31, 2011

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