Businesses in California, Illinois, Alabama, Mississippi and the District of Columbia face a markedly higher risk of being sued by their employees compared to the national average, according to a study by Hiscox.
According to the study, on average, a US-based business with at least 10 employees has a 12.5% chance of having an employment liability charge filed against them. However, businesses in several states face a much higher level of exposure to litigation. California has the most frequent incidences of EPL charges in the country, with a 42% higher chance of being sued by an employee for establishments with at least 10 employees over the national average. Other states and jurisdictions where employers are at a high risk of employee suits include the District of Columbia (32% above the national average), Illinois (26%), Alabama (25%), Mississippi (19%), Arizona (19%) and Georgia (18%). Lower-risk states for EPL charges include West Virginia, Massachusetts, Michigan, Kentucky and Washington.