Small Business: Corporate America’s Punching Bag

Small Business Owners Continue to take the Brunt of Issues while Big Business Remains Unscathed.

In 20 years, employee lawsuits and termination lawsuits have increased by 400% and 260%, respectively. The jump is so astounding it’s said that businesses now are three times more likely to get sued by their employees than to experience a fire at the office.

Crazy, right? Sure, but we saw this coming a mile away.

As we continue introducing sweeping legislature to the already muddy waters of Corporate America coupled with COVID-19 workplace policies and a high-tension political climate, the divide between employer and employee has become more significant than ever before.

Copropate America v. Small Business

We like to think our local mom & pops wouldn’t be as vulnerable to the rise in employment-related fines, violations, and lawsuits when compared to Big Busines that has hundreds if not, thousands of employees…right? Nope! In this case, the “larger the net, more fish caught” adage does not apply.

Let us introduce EPLI insurance or employment practices liability insurance. Some multi-million companies have insurance coverage through EPLI. When a business gets slapped by an employment lawsuit, EPLI is there to cushion the blow. Unfortunately, that’s not the case for all businesses. According to small business lawsuit statistics, approximately 70% of employers don’t have EPLI up their sleeves. If the business carries a lot of cash, the defense cost shouldn’t be a problem. However, this is rarely the case for small businesses.

41.5% of Lawsuits are Against Small Businesses

While larger businesses with enough cash flow to purchase legal defense or EPLI coverage continue to thrive, it is the small businesses that suffer in the end. The cost of a lawsuit filed against a business is not the same as it was decades ago. To be precise, it has risen by 26% in the last three years. If this trend continues, lawsuits can become too costly for employers, thus detrimental to businesses.

For example, If an employee files a discrimination charge against an employer, and the case goes to trial, it could cost the business from $150,000 to $200,000. For a small business, that amount could potentially cripple its operations. With no capital reserves to use to fight claims and no insurance to fall back on, SMBs are desperately reaching out for a helping hand.

Outsource to Overcome

Stuck between a rock (inability to afford EPLI) and a hard place (inability to fund a legal defense), Small to Medium-sized Businesses (SMBs) are forced to tread carefully when maneuvering the endless minefield of being an employer. Unbeknownst to them and roughly 98% of the Nation, PEOs or Professional Employer Organizations have been providing SMBs with solutions to employment-related issues since the early 90s.

Do you remember the reason you went into business for yourself? I bet it wasn’t so you can deal with labor laws, employment-related legal issues, paying taxes, HR headaches, dealing with workplace injuries, and juggling employee benefits. Am I right? These are the non-revenue producing, but necessary, tasks that all employers must abide by to stay open and compliant. That is why there is an industry dedicated to helping SMBs outsource these tasks allowing the employer to re-focus on the things that really matter: Growing their Business.

Still Not Convinced? Lets Talk.

ChampionPEO serves small to medium-sized business owners throughout the nation saving employers money, stress, and most of all, time. Through their Single-Source HR Solution, business owners no longer have multiple vendors or waste time and money “doing it themselves” when juggling Payroll, Taxes, HR, Comp., and Benefits. By outsourcing your back-office to ChampionPEO, business owners can refocus on what really matters: Growing their Business.

If you are interested in learning more about how ChampionPEO can provide your business “The Freedom to Grow”, contact our Business Development Department by sending an email to or by calling 313-67-CHAMP to talk to one of our Representatives.

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