Rising Employment Litigation Costs Prompt Businesses to Reevaluate Termination Practices and Risk Management Strategies

LOS ANGELES, CA / ACCESS Newswire / February 27, 2026 / Corporate America allocates billions of dollars annually to manage operational risks including supply chain disruption, inflation volatility, and cybersecurity threats. However, employment litigation is emerging as a significant and often underestimated financial liability.

According to data from the U.S. Equal Employment Opportunity Commission (EEOC), workplace retaliation and termination-related complaints consistently represent nearly half of all charges filed nationwide each year. As exposure increases, consultation with a Los Angeles wrongful termination attorney has become more common in high-regulation jurisdictions, particularly in California where layered state and federal labor protections significantly expand employer liability.

Recent reporting periods reflect more than 70,000 workplace discrimination charges annually, with retaliation claims accounting for approximately 49%-55% of filings.

California remains one of the most active jurisdictions for employment-related lawsuits due to extensive worker protection statutes. In high-regulation states such as California, termination decisions increasingly carry substantial financial and legal risk.

Average wrongful termination settlements nationwide range between $40,000 and $250,000. In aggravated cases, jury verdicts may exceed $1 million. Beyond settlement exposure, employers frequently incur defense costs ranging from $75,000 to $150,000, alongside indirect costs including executive time diversion, insurance premium increases, and reputational impact affecting investor confidence.

Public companies increasingly disclose employment litigation as a material risk factor in annual filings, highlighting growing awareness among investors and corporate governance teams.

California's employment framework includes:

• The Fair Employment and Housing Act (FEHA)

• Whistleblower protection statutes

• Anti-retaliation provisions

• Wage and hour enforcement regulations

These statutory protections increase employer exposure where termination procedures lack thorough documentation and compliance safeguards.

In response to litigation growth, businesses are implementing structured risk mitigation measures including formal termination review checklists, quarterly HR compliance audits, managerial training on discrimination and retaliation laws, and pre-termination review by outside employment counsel.

Employment litigation is no longer viewed as an isolated HR issue. For many organizations, it has become a measurable financial risk category requiring proactive compliance strategy.

About Azadian Law Group, PC

Azadian Law Group, PC is a California-based employment law firm representing employees in matters involving wrongful termination, workplace discrimination, retaliation, and whistleblower claims.

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Azadian Law Group, PC
Email: seo@azadianlawgroup.com

Website: https://azadianlawgroup.com/

SOURCE: Azadian Law Group, PC