A recent Lex Machina report shows a stark decline in federal employment litigation since 2020, including claims of discrimination, wage and hour disputes, and disability accommodation violations.
Numerous factors have contributed to this downward trend, including mandatory arbitration provisions, an uncertain economic climate, workforce reductions, increased resignations, and the rise in remote workers caused by the COVID-19 pandemic. State laws that protect employees have also encouraged plaintiffs to file claims in state courts, which has caused fewer federal cases to be initiated, a trend that Constangy partner and diversity, equity, and inclusion practice group co-chair, Lara de Leon, points out in a recent discussion with Law360.
"Many states — California just being one of them — have laws that are not only much more protective of employees, but are more lucrative for them to bring cases under due to their lack of damages caps," Lara explains.
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