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According to Gorski and Tataryn (2009) in the past 20 years the numbers of employee lawsuits have increased to 400%. There are 6.5 claims every 1,000 employees. This is a huge increase in 20 years and the reason for this increase is the increase in the complexity of the organization and the employees being indifferent to the employee handbook. It has been seen that most of these lawsuits were targeted against private employers. It has also been noticed that these private employers mostly had small and medium sized companies with 15-100 employees (Gorski & Tataryn, 2009). There were many companies (23.9%) who had almost 500 employees and were not considered in the category of small and medium enterprise however, were also subjected to lawsuits. It has been noticed that wrongful termination lawsuits have gone up 250%. 7% of these cases come to the federal court while the rest go to the state court. Moreover, there has been a huge increase in the amount of settlement to. The average settlement has gone up from $130,476 in 2001 to $310,845 (Gorski & Tataryn, 2009). Below are some statistics regarding this issue;

Compensatory Awards for Wrongful Termination (Percent of Total) 

Up to $9,999                         5%

$10,000 - $24,999                    9%

$25,000 - $99,999                   23%

$100,000 - $249,999                 24%

$250,000 - $499,999                 23%

$500,000 and Greater                11%

Source: David, 2008

Below are losses as per the type of claim

Work-Related Sexual Discrimination Including Sexual Harassment
 
Midpoint Verdict                    $59,835
Probability Range                   $67,000 - $200,000
Verdict Range                       $1 - $15,000,000
Average Verdict                     $501,622
Source: David, 2008
Age Discrimination
 
Midpoint Verdict                    $145,620
Probability Range                   $62,000 - $250,000
Verdict Range                       $1,500 - $1,803,547
Average Verdict                     $358,956
 
Source: David, 2008
Wrongful Termination - General
 
Midpoint Verdict                    $100,000
Probability Range                   $30,300 - $304,934
Verdict Range                       $1 - $46,402,891
Average Verdict                     $532,016
Source: David, 2008 
Wrongful Termination Based on Age Discrimination
 
Midpoint Verdict                    $200,000
Probability Range                   $62,000 - $250,000
Verdict Range                       $1,500  $1,500,000
Average Verdict                     $270,665
Source: David, 2008 

The huge numbers above reflects that a little negligence can cost a lot to the organization, the employer as well as the employee. Therefore, it is recommended that all employees read the employee handbook clearly and make sure that they understand everything in it. Not only it will help them avoid any lawsuits, it will also be beneficial for their organization. An organization is like a family where all people work together towards achieving the same target. Therefore, having better and effective communication through this handbook can help both the employer and the employee have a clear and understanding relationship.

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