Need to avoid employee litigation? Read Blaine R. Blood’s advice in the latest USLAW Magazine
Reports have shown that lawsuits regarding minimum wage and overtime requirements were up nearly 10 percent in 2013. In fact, the number of these lawsuits has increased steadily over the past twenty years.
Can your company afford to be dragged through employee litigation when there are steps to prevent this from happening?
In USLAW magazine, Bingham Greenebaum Doll LLP partner Blaine R. Blood shared his advice to employers on how to mitigate, or avoid, employment litigation.
Blood suggested two ways to mitigate risks involved with class-action lawsuits: class-action waivers and statute of limitation waivers.
Class-action waivers prevent employees from dragging a company through the court system by forcing them to work things out “one-on-one” in private arbitration rather than a public courtroom. However, if a company loses in arbitration, it has almost no chance of getting the ruling overturned. Implementation of arbitration agreements limiting class-action lawsuits should be carefully considered by the company, and Blood strongly suggested seeking counsel before moving forward.
Statute of limitation waivers shorten the time limit for employees to file a claim. The time limit for bringing a discrimination charge with the EEOC is either 180 or 300 days, depending on the circumstances. However, Kentucky allows five years to file a discrimination claim under state law. When employees sign statute of limitation waivers, the company can limit how long employees have to file a claim, thus avoiding stale claims.
Just as in class-action waivers, when a company wants to implement a statute of limitation waiver, they should consider legal counsel first.
Either way, the options discussed in Blood’s article provide a couple of ways to protect an employer from the risks associated with employment problems.
To read the full USLAW Magazine article, please click here.