No matter how aboveboard you are as an employer, if an employee files a lawsuit against you, it is a no-win situation for you and your company.

If an employee sues you, and you hire an attorney and it goes to trial, what do you win? You've paid your lawyer $75,000 to $150,000 to defend the case, and if you don't win, you lose it. An employer most likely loses the money, even if he or she wins the case.

There seems to be a never ending flow of frivolous litigation involving employment situations, but even the bad cases are worth money to lawyers. The majority of employment litigation is settled out of court because the defendant (the employer) makes a bottom-line business decision. In most cases the employer would rather settle the case for under $50,000 as opposed to racking up lawyer's fees far in excess of the settlement. Business owners are in financial jeopardy from the moment they sit down with their attorney.

In the USA, anyone can sue anyone at any time. Employment litigation is almost always based on a discharge for reason. In most cases employees who sue are bolstered by the numerous legal exceptions to the at-will meaning of 'termination of employment'.

Federal law supersedes state laws. Besides the obvious - one cannot be fired for reasons based on race, gender, religion, etc. - federal law also mandates employees cannot be terminated because of issues like workers' compensation claims or jury duty. Most employers hire and fire based on the federal guidelines; however, a terminated, disgruntled employee has every right in America to file a lawsuit, regardless of the employer's reason for discharge. Most attorneys take these cases based on contingency fees.

There is no other way around it, small-business owners, in particular, need to incorporate smart employee practices from the get-go and be savvy about preventive measures to avoid employee litigation when a termination is inevitable. The GlasshouseReport.com gives employers the tools to pro-activley combat this compensation culture in the workplace.

TheGlasshouseReport reduces litigation risk by improving and enhancing traditional human resource practices. Every employee confirms their compliance and understanding of company policy biometricly. Leaving employers to concentrate on what is important, growing their business.