The Number of California Small Businesses Facing Employment-Related Claims Continues to Increase

Large corporations frequently face allegations of discrimination, retaliation, and wrongful termination, but these employment law claims are not unique to large corporations. The headlines are full of discrimination lawsuits against big names like Coca-Cola, Wal-Mart, and Ford and the associated multi-million dollar settlements. Yet under California state law protections, workers at smaller, California businesses can file suit alleging employment law violations. Many of these small business lawsuits are filed against dental practices. 

More California Workers Employed at Small Businesses Are Alleging Employment Law Violations:

 California workers enjoy protections under state law, and they are turning to these protections more and more often. In 2017, California ranked 3rd in the nation for employment lawsuit risk to small to medium-sized businesses specifically (Hiscox “Guide to Employee Lawsuits”). The Hiscox publication pulled data from both national and state agencies. So, according to the data, smaller California businesses faced a 46% chance of facing an employment law allegation compared to the significantly lower 10% national average.

Any business with at least one employee runs the risk of facing an employment law allegation or a wrongful employment claim.

Do Dental Practices Face a Higher Risk of Employment Law Violation Allegations?

The Dentists Insurance Company (TDIC) recorded 82 employment law-related claims in 2018. This number is up from the 66 employment law-related claims received in 2017. Experts attribute the increase to the growing number of legislative actions designed to protect employees from workplace discrimination and harassment. Additionally, changing legal views and interpretation of wrongful termination and the increasing number of employees seeking justice and retribution through legal measures add to the overall rising claims trend.

Employment Law Violations & California Small Businesses:

Large corporations generally survive costly litigation. However, the same is not true of California's small businesses. A small business facing a lawsuit can be quickly overwhelmed. A lawsuit alleging employment violations may ruin a small business entirely by draining them of both financial resources and employee morale.

One type of “small business” that faces this danger is dental practices. Most dental practices do not have general counsel on staff. Additionally, many do not have a human resources department to manage claims. The time investment to address allegations of employment law violations can take a toll on the dentist and create the potential for decreased quality of care. The average employment law violation claim (according to the 2017 Hiscox report) requires 318 days to resolve with an average settlement of $160,000.

If you need to discuss employment law violations or if you need to file an employment lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.