Your company has a 1 in 8 chance of being sued for … — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Your company has a 1 in 8 chance of being sued for …

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in Employment Law,Human Resources

U.S. businesses with at least 10 employees have a 12.5% chance of having an employment liability charge filed against them, according to a recent study by Hiscox, a specialty insurer that focuses on employer legal liability coverage.

However, employers in California, Illinois, Alabama and Mississippi, along with the District of Columbia, are at a substantially higher risk of being sued compared with the national average.

Lower-risk states include West Virginia, Massachusetts, Michigan, Kentucky and Washington.

State laws account for much of the difference. While federal employment law is consistent nationwide, state law varies widely and can drive more or less litigation, depending on where an employer does business, according to Hiscox’s Bert Spunberg.

“Understanding employee litigation risk at a state level is a crucial step for an organization to establish the processes and protections to effectively manage their risk,” he says.

Meanwhile, a quarter of your employees don’t trust you

About half of U.S. employees say their employers are open and upfront with them, according to a survey by the American Psychological Association, but almost 25% of them say they do not trust their employers.

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