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How to Avoid Class Litigation

By Joseph M. Sellers and Julie Reiser
April 27, 2005

In the past year, large settlements of “pattern or practice” employment discrimination claims against several major companies, and the largest civil rights class action suit in American history against Wal-Mart Stores, have prompted questions about what employers can do to avoid being the next target. The following are key indicators in determining whether a company is in danger of class litigation.

A Repeated Pattern of Individual Complaints

Equal employment opportunity class cases develop when individuals complain about employment practices they allege have been applied in a discriminatory fashion. Often, the first complaints are insufficient alone to demonstrate a pattern of conduct that would warrant further investigation, much less the filing of a class suit. But if these complaints are tracked in a database, patterns may emerge over time that warrant further investigation. Plaintiffs' attorneys look for patterns, and prudent employers should do the same.

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