36% of companies expect more employee litigation in 2025: Here’s how to reduce that number

Recently, there has been a notable increase in employee lawsuits against employers, particularly in the healthcare field.

According to a survey by Norton Rose Fulbright, 36% of respondents anticipate greater exposure to labor and employment litigation in 2025, which is up from previous years. This uptick is attributed to concerns over cost-cutting measures and job security during uncertain economic times, as well as changes in administration that influence employment agencies like the EEOC and the Department of Labor.

Certain states face a higher risk of employee lawsuits.

California, Illinois, Alabama and Mississippi face higher risks of employee lawsuits compared to the national average. Contributing factors include robust employment laws, favorable legal environments for employees, and specific statutes that incentivize litigation.

California’s strong employee protections, PAGA law, and one-way attorney fee statutes increase claims, while Illinois sees a high lawsuit volume due to its legal climate.

Southern states like Alabama and Mississippi experience more litigation in regards to discrimination and retaliation cases. Industries with large workforces, such as healthcare, can further heighten litigation risks nationwide.

Discrimination and harassment claims are at the forefront of these legal challenges.

Half of the survey respondents identified these issues as potential risks in 2025, an increase from 44% in 2024. The rise of “reverse discrimination” lawsuits, where individuals allege bias due to diversity and inclusion initiatives, further complicates the legal environment.

Data privacy has also emerged as a critical concern, with 48% of respondents expecting increased challenges related to employee data management in 2025, up from 36% the previous year. The growing complexity of data privacy regulations necessitates that employers implement robust measures to protect employee information and comply with evolving legal standards.

What’s the solution to reducing employee lawsuits?

In this challenging landscape, companies like American Health Connection (AHC) offer solutions that not only enhance operational efficiency and patient experience but also help mitigate the risk of employee lawsuits. As the nation’s first and most comprehensive centralized scheduling service, AHC specializes in streamlining patient interactions, which can lead to improved compliance with employment laws and regulations.

By outsourcing patient communication tasks to AHC, you can ensure that your staff won’t be overburdened, which reduces the likelihood of burnout and associated legal claims. This approach also allows you to focus on core clinical functions while AHC manages administrative tasks efficiently.

Moreover, AHC’s services can increase patient satisfaction, as trained professionals handle patient scheduling, reminders, and follow-ups to ensure a seamless patient experience. Satisfied patients are more likely to adhere to treatment plans and maintain ongoing relationships with you, contributing to better health outcomes and increased revenue growth.

The rise in employee lawsuits highlights the need for employers to proactively address potential legal risks. Partnering with an organization such as AHC can be a strategic move to enhance operational efficiency, improve patient satisfaction, and reduce the likelihood of employment-related legal challenges.

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