6 things employers need to know about class action lawsuits

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By Rachelle Wilber

Class action lawsuits are legal proceedings in which a large group of people (the “class”) collectively file a lawsuit against a defendant or defendants. They are frequently filed in cases where there are a large number of potential plaintiffs with relatively minor individual claims. The idea is that by banding together in a class action, the plaintiffs will be able to pool their resources and have a better chance of success than if they each filed separate lawsuits. Here are six facts about class action lawsuits that employers should be aware of.

Understand your options

You should know your options if you have been served with a class action lawsuit. You may be able to settle the case without going to court, or you may decide to go to court. If you opt out of a court settlement, you will almost certainly be required to pay the plaintiffs some money. If you choose to go to court, you will be expected to find an attorney and prepare for a lengthy and costly legal battle.

Class action lawsuits are complex

Class action litigation is a complex legal case that can be hard to defend against for employers. Hire an experienced class action defense attorney to help you navigate the legal process.

Early intervention is key

Act as soon as possible if you’re facing a class action case. The sooner you retain counsel and begin preparing your defense, the better. Employer class action defense is costly, and employers may find it difficult to afford. Your insurance company may be able to assist you financially. However, you should not expect insurance to cover your expenses. You will almost certainly be responsible for a substantial portion of the costs of defending yourself in a class action lawsuit.

Avoid liability

Employers may avoid liability in a class action lawsuit if the case is settled before trial. The settlement means that the employer agrees to pay the plaintiffs a certain amount of money in exchange for the plaintiffs agreeing to drop the lawsuit. In some cases, employers may also be willing to alter their policies or practices as part of a settlement.

Prevent class action lawsuits

Employers can avert class action suits by establishing clear policies and procedures and training their employees on these policies and procedures. Employers should also ensure that any complaints of discrimination, harassment, or other potential violations are investigated and addressed as soon as possible.

Consult an experienced attorney

If an employer is facing a class action lawsuit, they should consult with an experienced attorney. An experienced attorney can assist employers in navigating the complex legal process and obtaining a favorable outcome.

Class action lawsuits can be complicated to defend against. If you have been served with a class action lawsuit as an employer, you must understand your options and consult an attorney who can help you obtain a favorable outcome.


Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor’s degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym.


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