The High Cost of Non-Compliance!

The Society of Human Resource Managers (SHRM) estimates that 60% of small businesses have been involved in an employee-initiated lawsuit.

Wrongful Termination - $500,000
Average defense costs are approximately $85,000. Jury verdicts typically average $500,000.

Sexual Harassment - $8,100,000
A judge awarded a recruiter $8.1 million for sexual harassment, sex discrimination, retaliation, and emotional distress claims against her employer.

Age Discrimination - $4,200,000
A former claims adjuster, age 57, was awarded $4.2 million by a jury which found that age was a determining factor in his termination. After a jury trial, an employee was awarded more than $800,000 in damages from the employer, who was found to be in "willful" violation of the Age Discrimination in Employment Act.

Racial Discrimination - $380,000
An African-American employee, who was fired after testing positive on a drug test, was awarded $380,000 by a jury. The employee was asked to submit to testing after he was involved in a minor accident. Although he requested a confirmatory test, the company refused and terminated him.

Family and Medical Leave Act (FMLA) - $80,000
A hospital employee was fired when she took leave to care for her two sick children. After being found liable, the hospital had to pay $58,000 in back pay and benefits. A jury awarded an employee, who was fired after requesting leave for depression and anxiety, $19,000 in damages and $80,000 in attorneys' fees.

Disability Discrimination (ADA) - $7,100,000
A verdict in the first Americans with Disabilities Act case to be litigated by the Equal Employment Opportunity Commission (EEOC) awarded $572,000 to a plaintiff who was fired after he was diagnosed with terminal brain cancer. A jury awarded a discharge executive $7.1 million in compensatory and punitive damages after he was fired one day before he was scheduled for release from an outpatient alcohol rehabilitation program.

Fair Labor Standards Act (FLSA) - $10,000
The FSLA provides that an employer found guilty of willful violations of the Act may be fined up to $10,000. Subsequent violations may include a prison sentence up to six months. Furthermore, the employee has the right to sue in "any court of competent jurisdiction" for any unpaid minimum wages or overtime.

Illegal Immigrant Workers - $10,000
If a company is found to willfully violate the Immigration Reform and Control Act, the company can face fines of up to $2,000 for each unauthorized alien. If subsequent violations follow, the company will be subject to fines ranging from $2,000 to $10,000 per violation, and an additional $1,000 per each paperwork violation incident.

National Origin Discrimination - $18,000,000
A Texas federal court jury has awarded four former managers of a large convenience store chain more than $18 million after the chain was found to have discriminated on the basis of national origin.

Religion Discrimination - $500,000
A Muslim security guard was awarded $500,000, including attorney's fees, after he was harassed and prevented from praying at work.

Negligent Hiring - $2,500,000
After a delivery man attacked a customer, the employer was held liable for $2.5 million for negligently hiring and retaining the delivery man. No job interview was conducted; no references were requested; and he was not asked to complete a job application. It was later discovered that the delivery man had a juvenile record for armed robbery and burglary and had adult records of arrests and convictions for assault and battery.

COBRA - $1,000,000
Both husband and wife were covered under group plans of their respective employers (dual coverage under both plans). The husband contemplated leaving his employer and asked if he would be entitled to elect COBRA. He was assured by his employer that he could elect COBRA. HE paid all monthly premiums due for coverage. Several months later his wife gave birth to twins who required intensive medical care. The husband's plan denied claims for coverage, asserting that the husband never should have been permitted to elect COBRA because he had dual coverage at the time of termination. The wife's plan denied all claims as well. A lawsuit resulted. The court awarded damages to the husband and wife in excess of $1 million dollars.

Safety and Health Violations - $1,300,000
OSHA issued proposed penalties of nearly 1.3 million against a poultry processor following a series of accidents. It was found that the company failed to use proper safety procedures to ensure that hazardous machinery was turned off or "locked" during repair, maintenance, or servicing work. OSHA also found that managers were aware of the hazards and failed to respond to employee concerns about equipment safety procedures.

OSHA Willful Violations - $70,000
OSHA unveiled a new $25,000 minimum penalty for many willful violations-a five fold increase from the current $5,000 floor mandated by the 1990 amendments to the Act. Penalties for willful violations, depending on the types and seriousness of the violation, can reach a maximum of $70,000.

DOT Fines - $25,000
According to DOT regulations, a carrier failing to properly maintain the Drive Qualification File can be fined up to $2,500 per form. Any type of maintenance conducted on a vehicle must be logged in a file. If the log is not up to date or if the vehicle is in need of maintenance, the carrier will be fined up to $250 per occurrence. Fines for not complying with the safe transportation of hazardous material can be up to $25,000, depending on the seriousness of the violation.

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Click HERE to learn how Professional Employer Organizations (PEOs) can also protect you from these issues.