How Much Does Discrimination Cost?
A few months ago, I had a conversation with a small business owner, Lisa, who was at her wit’s end. Her company was growing, but with that growth came a surge of HR challenges. She was overwhelmed with compliance issues, employee relations, and recruitment woes. The tipping point came when a misunderstanding escalated to a costly legal situation.
Lisa confided in me, saying, “I just want peace of mind knowing my HR is handled by experts. I can’t afford to hire a full-time HR team, but I need more than just advice. I need actionable support. Is this even possible?”
Around the same time, I spoke with Jon, who shared that a discrimination charge had cost him more than $80,000 in legal fees. It wasn’t just the financial hit that hurt — it was the damage to his team’s morale and the reputation of his business.
Jon confessed to me, “If I had invested in proper HR support earlier, this might have been prevented. I thought I could handle it all myself, but HR is a whole different ball game.”
These stories are, unfortunately, not unique. Many small business owners find themselves in similar predicaments, wishing they had the foresight to address HR issues proactively rather than reactively.
The EEOC received more than 73,000 discrimination charges in 2022, which was a 20% increase over the previous year.
Don’t think it’s happening in your company? In 2022, 61% of employees said that they had witnessed workplace discrimination.
Want to know what discrimination could cost your company?
Lost pay damages, including fringe benefits, bonuses, vacation leave, and pension payments
Compensatory and emotional distress damages
Punitive damages
Attorney fees and costs
While it’s difficult to calculate the average settlement amount for EEOC claims, there are some statutory limits for employment discrimination lawsuits filed at the federal level. Those include $50,000 if the employer has between 15 and 100 employees, or $100,000 if the employer has 101 to 200 employees.
Discrimination is expensive, my friends. And it should be.
For me, it’s not enough to fight off these claims when they arise. In my experience, your culture is in rough shape if it makes it all the way to a settlement.
Trust me when I say that it’s way less expensive to have a thriving, supportive company culture.
That is exactly why I created HRuprise Unlimited.
HRuprise Unlimited offers small businesses unlimited HR requests on a subscription basis. We’re not just advisors — we become an extension of your team, providing hands-on expertise to navigate complex HR challenges before they escalate. From compliance to crafting policies to employee relations and beyond, we’ve got you covered.
Imagine having the peace of mind that your HR is in expert hands. You can focus on what you do best — your business — without the looming fear of unexpected HR issues.
Don’t wait for a costly lesson to teach you the value of good HR support. Invest in peace of mind with HRuprise Unlimited.
Ready to turn your HR challenges into successes? Let’s chat.
