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What is the average cost of workplace harassment claims?


In 2012, the average cost to defend a harassment lawsuit was $250,000. The average jury awarded $600,000 or more in damages. These are big numbers, big enough to have many small businesses closing their doors. However, the costs do not end there. In addition to apparent costs with concrete numbers associated, there are also hidden costs to harassment in the workplace.


The average hidden cost of harassment is between $300-$1000 per employee. These costs are less obvious but come from how the organization’s systems are negatively affected by harassment. The consequences of harassment do not always end in court; harassment at work can increase turnover, decrease employee engagement and productivity, increase health care premiums due to stress, and shrink your pool of potential talent. These costs are harder to pin down, yet take a toll on your bottom line.


Building a solid company culture and taking employee harassment claims seriously can help to prevent these costs. Are you interested in creating a healthy workplace culture? Set up a call with us here.