Why Employees Are Filing Multiple Legal Claims Against Employers (And How to Protect Your Business)

jelizabetha
Oct 1
5 min read

Employment litigation has reached unprecedented levels across North America. In 2024 alone, employment-related lawsuits increased by 23% compared to the previous year, with many cases involving multiple claims against single employers. This trend isn't slowing down: it's accelerating.

What's driving this surge? More importantly, how can you protect your business from becoming another statistic?

The Perfect Storm: Why Claims Are Multiplying

Several converging factors have created an environment where employment disputes flourish. Understanding these drivers is your first line of defense.

Increased Employee Awareness and Access to Legal Resources

Social media and online legal resources have educated workers about their rights like never before. Employees now recognize potential violations that previous generations might have accepted as normal workplace conditions. Online legal directories make it easier to find employment lawyers, while contingency fee arrangements remove financial barriers to pursuing claims.

Remote Work Complications

The pandemic-driven shift to remote work created new legal gray areas. Issues around overtime tracking, workplace safety standards, and accommodation requirements have become more complex. Many employers struggled to adapt their policies quickly enough, creating compliance gaps that fuel litigation.

Economic Pressures and Job Market Volatility

Economic uncertainty makes employees more likely to pursue legal remedies when they feel wronged. Layoffs, restructuring, and changing work conditions create fertile ground for wrongful termination and discrimination claims. When job security feels tenuous, legal action can seem like the only available protection.

The Most Common Claims Employers Face

Discrimination and Human Rights Violations

Discrimination claims remain the most frequent type of employment lawsuit. These cases often involve:

Age discrimination during layoffs or hiring decisions
Gender-based pay inequities that violate equal pay legislation
Disability accommodation failures that violate human rights codes
Racial or ethnic bias in promotion and discipline decisions

The challenge with discrimination claims is they often rely on circumstantial evidence and patterns of behavior rather than clear-cut violations.

Wrongful Termination and Constructive Dismissal

Termination-related claims have become increasingly sophisticated. Employees and their lawyers now understand concepts like constructive dismissal: where significant changes to working conditions effectively force resignation. Common scenarios include:

Substantial reduction in responsibilities or compensation
Forced relocations without proper notice
Toxic work environments that make continued employment impossible
Terminations without adequate notice or severance

Wage and Hour Violations

These claims hit employers where it hurts most: the bottom line. Wage and hour disputes typically involve:

Unpaid overtime for non-exempt employees
Misclassification of employees as independent contractors
Off-the-clock work including pre-shift setup and post-shift cleanup
Missed break periods and meal time violations
Improper calculation of vacation pay and statutory holiday compensation

Harassment and Toxic Workplace Claims

Workplace harassment claims have expanded beyond traditional sexual harassment to include:

Psychological harassment and workplace bullying
Failure to provide a harassment-free workplace
Inadequate investigation of harassment complaints
Retaliation against harassment complainants

The Retaliation Problem: When One Claim Becomes Many

Retaliation claims often accompany other employment disputes, multiplying potential damages. When employees file complaints about workplace issues: whether through internal channels or external agencies: any subsequent negative employment action becomes suspect.

Common retaliation scenarios include:

Disciplinary action following discrimination complaints
Termination after workers' compensation claims
Reduced hours or responsibilities after harassment reports
Exclusion from meetings or projects after whistleblowing

The timing correlation between complaints and adverse actions often drives these claims, even when legitimate business reasons exist for the employer's decisions.

Legal Developments Amplifying Risk

Expanded Human Rights Protections

Provincial human rights codes continue expanding protected grounds and employer obligations. Recent additions include:

Genetic characteristics as protected grounds in some provinces
Social condition protections in certain jurisdictions
Enhanced accommodation duties for mental health conditions
Broader family status definitions covering caregiving responsibilities

Strengthened Whistleblower Protections

New and amended whistleblower legislation creates additional litigation risks. These laws often provide:

Extended limitation periods for filing complaints
Broader definitions of protected disclosures
Enhanced remedies including punitive damages
Reverse onus provisions requiring employers to prove legitimate reasons for adverse actions

Class Action and Representative Proceedings

Changes to class action procedures make it easier for employees to pursue collective claims. Representative actions allow single plaintiffs to pursue claims on behalf of similarly situated employees, multiplying potential exposure.

Your Protection Strategy: A Multi-Layered Approach

Policy Development and Implementation

Create comprehensive, current policies covering:

Anti-discrimination and harassment procedures
Complaint investigation processes
Accommodation protocols
Social media and privacy guidelines
Remote work standards and expectations

Key implementation tips:

Review and update policies annually
Ensure all employees acknowledge receipt and understanding
Train managers on proper policy application
Document all policy-related decisions and communications

Documentation and Record-Keeping Excellence

Poor documentation destroys more employment defenses than any other factor. Implement systems for:

Performance Management:

Regular performance reviews with specific, measurable criteria
Documented coaching sessions and improvement plans
Clear communication of expectations and consequences
Consistent application across all employees

Discipline and Termination:

Written warnings with specific incidents and dates
Progressive discipline policies fairly applied
Business justifications for all employment decisions
Consultation with legal counsel before significant actions

Proactive Training and Communication

Manager Training Programs Should Cover:

Recognizing potential discrimination and harassment
Proper investigation techniques for complaints
Documentation requirements and best practices
Legal obligations for accommodation and leave
How to communicate difficult employment decisions

Employee Communication:

Regular updates on policy changes
Clear channels for raising concerns
Anonymous reporting options where appropriate
Educational sessions on workplace rights and responsibilities

Early Intervention and Legal Consultation

The cost of prevention pales compared to litigation expenses. Establish relationships with employment lawyers before you need them. Consider legal consultation for:

Significant policy changes or implementations
Complex accommodation requests
Disciplinary actions involving protected employees
Termination decisions with potential complications
Any situation where legal claims seem possible

When Claims Arise: Damage Control Strategies

Despite your best prevention efforts, claims may still arise. Your response can determine whether a minor issue becomes a major lawsuit.

Immediate Response Protocol:

Document everything related to the complaint
Preserve all relevant records and communications
Notify your insurance carrier if you have employment practices coverage
Engage legal counsel before responding to formal complaints
Continue normal business operations while addressing the issue
Avoid retaliation against complainants

Investigation Best Practices

When internal complaints arise:

Act promptly but thoroughly
Use trained investigators or external professionals
Maintain confidentiality to the extent possible
Interview all relevant witnesses
Document findings and remedial actions
Follow up to ensure effectiveness of any corrective measures

The ROI of Prevention

The average employment lawsuit costs employers between $75,000 and $125,000 in legal fees alone: before considering settlement amounts, productivity losses, and reputational damage. Investing in prevention through proper policies, training, and legal consultation typically costs a fraction of defending even one claim.

Calculate your risk:

Number of employees × average industry claim rate × average settlement amount
Factor in legal defense costs and management time
Consider reputational and recruitment impacts

Most businesses discover that comprehensive employment law compliance programs pay for themselves by preventing just one significant claim.

Moving Forward: Your Action Plan

The employment litigation landscape will continue evolving. New laws, court decisions, and social expectations regularly reshape employer obligations. Success requires ongoing attention to compliance, not one-time fixes.

Your 90-day action plan:

Audit existing policies against current legal requirements
Assess documentation practices and manager training needs
Review recent employment decisions for potential risk factors
Establish relationships with qualified employment counsel
Implement systems for ongoing compliance monitoring

The businesses that thrive in today's environment treat employment law compliance as a competitive advantage, not just a legal obligation. Employees want to work for organizations that respect their rights and treat them fairly. Good employment practices attract better talent, reduce turnover, and create more productive workplaces.

Don't wait for the first claim to arrive. The time to build your defenses is now, while you can still control the outcome. Need help developing your employment law compliance strategy? Contact our employment law team today for a consultation tailored to your business needs.