Types of Lawsuits
Most states recognize the employer/employee “at will" clause meaning that both the employer and employee may terminate employment at any time, for any reason. Unfortunately, this doesn’t mean that employee lawsuits won’t occur.
Even if you feel you have dotted all the I’s and crossed all the T’s, an employee (former or current) can and will find an attorney to represent them if they feel they have a case against you. While some of these types of lawsuits may be frivolous, if the employee can pay an attorney, the lawyer probably wants the money and will pursue the case. These types of lawsuits can range from anything from character defamation to libel to sexual harassment to discrimination.
Depending upon the reason for the lawsuit, up and beyond filing the suit alone, employees can also contact state or federal agencies that by law, are required to investigate the employee accusations; real or imagined, valid or invalid.
Even if you have set written policies and procedures that outline employee lawsuits and how they will be handled, a state or federal agency such as the Equal Employment Opportunity Commission (EEOC) or Department of Labor can still investigate the claim and if you’re found at fault, that means money out of your pocket.