Basics of Protecting Your Business from Employee Lawsuits

Instant Attorney Drafted
Employee Handbooks

Multi-State
Business-employment attorney Jay Eckhaus 

Member of SHRM,
Society for Human Resource Management

Your Employee Handbook Must Comply with Your State Laws Because:

  If your Employee Handbook doesn't comply with your state's employment laws, it can help
  employees win a lawsuit against you, putting your biggest investment and livelihood at risk.
  
  The typical judgment for an employee lawsuit against an employer for non-compliance
  with state or federal laws is over $325,000.  

  When employees know that your Employee Handbook and Company Policies comply with
  your state and federal employment laws, they are less likely to bring a lawsuit against you.

  Other employee handbooks available online do not address the substantial number of
  state employment laws which put your company at risk.

  This attorney drafted Employee Handbook gives you the protection you need.

 Why is State Law Compliance Important?

• State Laws give employees more rights and protections than Federal Law.
• State Laws impose greater obligations and liability on employers.

  Here are Some Examples:

• More Wrongful Termination cases occur in State Courts than in Federal Courts because of violations of State Employee Rights and labor laws.


• The average jury award in a Wrongful Termination lawsuit is $536,927.


• One example is a case in which a waitress received an award of $122,563 for lost wages, emotional distress and punitive damages.


• The waitress received an extra $375,000 for her attorneys’ fees.


• Federal Cobra only applies to employers having 20 or more employees.


• Many states have Mini-Cobra Laws that require employers with as few as 2 employees to offer continuation of benefits for terminated employees. In such cases, State Laws would govern.


• Many states have strict requirements that employers must follow when using Drug Testing with applicants for employment and employees. In these cases, State Law would govern.


• Federal Law on Drug Testing requirements only applies to Federal Government Contractors, Motor Carriers and certain other limited Federal regulated activities. The vast majority of businesses are not covered by such Federal Law.


• Federal Equal Employment Opportunity Laws do not protect against Discrimination based on Sexual Orientation.


• Many States have laws prohibiting Discrimination based on Sexual Orientation.  In these cases, State Law would govern.


• There are no Federal Laws requiring employers to give employees Breast Feeding Leave or the privacy necessary for breast feeding. Many States require this leave.


• Many states require employees to be allowed leave where the employee or family member is a Crime Victim or Victim of Domestic Violence. There are no Federal Laws on this subject.  State Crime Victim's Leave or Domestic Violence Leave would govern.

 More Facts:

 Employment related lawsuits are the fastest growing category of civil cases in the U.S.  

 The median award for all employment related claims in 2009 skyrocketed by 60% over 2008.

 A greater percent of employment related lawsuits are filed in State Courts than in Federal  
 Courts.  

 To protect your business from employment lawsuits filed in State Courts, your Employee
 Handbook must be compliant with Your State's Laws.   

 To protect your business from lawsuits filed in Federal Courts Your Employee Handbook must
 be compliant with Federal Laws.        

 Federal Compliant Employee Handbooks will not protect you from liability or lawsuits based on 
 violations of Your State's Employment Laws.  It’s that simple!

 To maximize your business protection, we offer a complete Employee Handbook for Your State
 as the necessary first line of defense in order to protect you and your business from employee
 lawsuits under both Your State's Laws and Federal Laws.

 What Exactly Does Federal Compliant Mean?

Federal Compliant means that the policies comply only with Federal Laws as applied across all 50 States.

It does not mean that the Employee Handbook complies with Your State's specific employment Laws

A Federal Compliant Employee Handbook alone will not protect your business from employee lawsuits filed in State Courts based on State Employment Laws.

Federal law is the minimum requirement and does not meeet the tougher requirements of your state's employment laws.

Source of Statistics:

• "American Chronicle"
  Reporting on data from Jury Verdict Research: November 8, 2009.


• "Human Relationship Failures: Understanding Your Exposures to Employment Litigation"
  Catherine A. Asaro: 2005.


• "When You Fire An Employee | What to Expect"
  D. Betts.


• "Employment Termination Law"
  Maureen E. McClain.


• "Chubb Survey: Private Companies More Exposed, But Less Protected."
  Sarbanes-Oxley Compliance Journal: September 10, 2008.

Why You Need This Employee Handbook for Your State State Laws Protect Employees and Give Them More Rights • The typical judgment against an employer is $549,670 • Wrongful Termination claims are mostly filed in State courts • Retaliation Claims are the fastest growing area of lawsuits This Employee Handbook Protects You • includes necessary wording to protect you from employee claims • prevents problems triggered when an employee exits employment • makes it easy for you to comply with your state and federal laws • helps avoid significant penalties & monetary awards to employees We Did The Work For You: FAST, EASY, CURRENT, COMPLIANT Read more