The threat of employee-related litigation | PEO Blog
by Matt Thomas
Employee-related litigation is a constant worry for any employer.
U.S. Equal Employment Opportunity Commission (EEOC) charges reached an all-time high in 2010; wage and hour complaints constantly threaten a company’s bottom line.
Responding to an EEOC charge – many of which are frivolous – can cost a small company thousands of dollars – and that’s before it even reaches the formal stage. Legal fees can skyrocket when defending against a wage and hour complaint in court.
Staying up to date on labor laws is critical to the success of small- and medium-sized businesses, many of which lack the resources to do so on their own. That’s where a Professional Employer Organization (PEO) comes in: Part of a PEO’s responsibility is to stay educated on workplace laws and regulations and develop and maintain legally-approved workplace policies, both of which provide an employer peace of mind when it comes to employee-related litigation.
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