For most businesses, claims filed by current or former employees are inevitable. Companies, especially those with particularly large workforces, must balance various interests when deciding what to do when faced with litigation, or the threat of litigation. Should they settle early and avoid potentially unnecessary legal costs, or should they litigate for at least some period of time to dissuade other employees from believing they too might be able to get a quick payout? Striking the right balance is a constant challenge for companies.
So, when might early resolution be preferable to litigation?
Reasons Companies Choose Litigation Over Early Resolution
When a dispute involving an employee arises, there are various reasons not to consider early resolution and to choose litigation (or arbitration). First, a company may believe it has not done anything wrong; therefore, it does not want to consider settling purely based on principle. The immediate reaction is to hire a lawyer and
