Businesses end up in court for many reasons, but you need to pay close attention to allegations of harassment and discrimination if you run a business. From major corporations to smaller firms, the impact of a harassment case can lead to all sorts of problems for business owners.
Sometimes, business lawsuits arise as a result of false allegations of harassment. In certain instances, people take the details that surround an incident out of context. Sometimes, companies end up in court as a result of a staff member’s wrongdoing. It is important to take steps to prevent harassment and address these charges carefully in the event they surface.
How common are harassment charges?
According to the U.S. Equal Employment Opportunity Commission, the agency received more than 24,000 charges related to harassment (which also includes sexual harassment charges) over the course of fiscal year 2020. This figure only counts charges the EEOC received and does not count charges filed with Fair Employment Practices Agencies at the local or state level.
How can harassment cases affect your company?
The EEOC reports that for fiscal year 2020, harassment victims received $137.3 million in financial benefits. Harassment cases can deal a devastating blow to companies from a financial point of view, pushing some to close altogether. However, the impact of a harassment case can create other hardships.
If you run a business, a harassment case could generate strong emotions, such as anxiety and even depression. Moreover, your company could suffer irreparable damage in terms of its reputation. Make sure you go over all of the details of a harassment case and address the charges carefully.