Labor-related class-action lawsuits against employers jumped from 25.6% in 2021 to 43.4% in 2023
A recent RedBalloon report highlighted the growing threat of workplace litigation as a key challenge facing employers in the 2024 labor market. Labor-related class-action lawsuits against employers jumped from 25.6% in 2021 to 43.4% in 2023, according to the 2024 Carlton Fields Class Action Survey.
Additionally, workplace lawsuits increased 50% from 2022 to 2023, according to the Equal Employment Opportunity Commission. In the Freedom Economy survey of 80,000 small business owners, 57.4% of employers said that Gen Z was the most likely to pose a risk of a workplace lawsuit.
"Employers are facing a minefield of litigation risks in this volatile labor market," said RedBalloon CEO Andrew Crapuchettes. "From hiring and firing decisions to workplace policies, every move carries legal exposure. Proactive risk management is critical to navigating this challenging environment."
The RedBalloon report, 2024 Will Be Most Difficult Labor Market in a Generation, urges employers to embrace people-centric policies to weather the new era of labor market volatility.
"To succeed in 2024, employers will need to be laser-focused on managing risks while still finding and retaining the talent they need," continued Crapuchettes. "It's a delicate balance, but one that is essential for companies to master."
Download the full labor market report here.