The rising cost of employment lawsuits is a growing concern for employers
REDUCE LITIGATION COSTS
Complete Case Record is a Strong Defense
Labor and employment matters are the most common litigation pending against US companies, with more than one third of all companies facing at least one lawsuit with more than $20 million at stake in 2013.
(Norton Rose Fulbright Litigation Trends Survey 2014)
Reduce Litigation Costs
By managing internal investigations using i-Sight, companies protect themselves against litigation through thorough, timely and well-documented investigations and reduce the cost of litigation when it does occur. i-Sight maintains a complete record of every investigation, with all case activity dated and time-stamped. The case file contains all the information needed to defend the investigation, should it be needed, providing proof that the investigation was fair, timely and complete.
The EEOC receives nearly 100,000 charges against companies each year and the NLRB receives more than 20,000. The chances of your company being the subject of an employment lawsuit are high and so are the costs. Defending your company through discovery and a ruling on a motion for summary judgment can cost $75,000 to $125,000. And if you lose summary judgment that cost can be $175,000 to $250,000 if the case goes to trial.
In 2013, 43 per cent of large companies ($1 billion or more in revenues) spent $10 million or more in litigation, up from 33 per cent in 2012. (Norton Rose Fulbright Litigation Trends Survey 2014)
Sue files a files a sexual harassment complaint against her supervisor with the HR department. She is in a position to inflict a lot of damage on the ABC Company, where she’s been an employee for three months, if the company doesn’t respond to the allegation in a timely and fair manner.
Luckily, the ABC Company uses i-Sight to manage its investigations, and the HR supervisor who received the complaint immediately opens a new case file for the complaint, which is assigned to an investigator for follow-up. John, the investigator, receives a notification that he has been assigned a new case. He opens the file, reads the complaint information and begins to fill in the details. He contacts Sue to set up the initial complainant interview and gathers more information about witnesses and other involved parties, who he then contacts to set up interviews. Sue is confident in the way her complaint is being handled and does not feel the need to involve an outside attorney.
Even if the investigation is inconclusive, Sue is likely to be satisfied with the outcome because she feels the investigation was handled fairly. Research has shown that complainants are more likely to accept the outcome of what they perceive to be a procedurally fair investigation, even if they don’t agree with the conclusion.
Companies that use i-Sight to manage their investigations can demonstrate procedural fairness. Case files show the date and time the complaint was received, the moment the complaint was entered into i-Sight and the immediate steps that were taken to investigate the allegation. The case file contains every activity, dated and time-stamped, proving that the company acted lawfully and has a system in place to ensure that workplace misconduct is taken seriously, investigated and acted upon quickly. This can stop the lawsuit in its tracks or constitute a strong defense if the case goes to court.
“With i-Sight, our investigations proceed more efficiently, our clients get better information and our senior management is better informed”
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