How Businesses Can Avoid Costly Lawsuits With Proper Training
Lawsuits can cost more than just money. They can damage your reputation and lead to costly downtime. The worst part is that most lawsuits arise from avoidable mistakes usually made by employees who were never properly trained. Whether it’s a safety issue or compliance failure, ongoing training is one of the easiest ways to protect against getting dragged into court.
Training protects workplace safety and avoids fines
Safety in the workplace is the first line of defense against lawsuits, and training is what keeps it together. When employees aren’t trained or certified – especially where equipment is concerned – the risk of serious injury skyrockets.
Forklift operation is one of the clearest examples. OSHA requires forklift operators to be certified, and that’s not difficult to achieve. While operators need to be trained hands-on, OSHA forklift certification can be completed online in just a few hours for an entire team of employees. Without this certification, companies risk serious accidents and regulatory fines.
Training in any industry prevents expensive workplace accidents. If an accident doesn’t turn into a lawsuit, it will result in a workers’ compensation claim. While carrying workers’ comp is a legal requirement, claims will cause premiums to rise and over time, the extra expense can add up to significant money.
Training reduces litigation risks
Most employment lawsuits don’t come from catastrophic accidents, since injured parties are usually required to file a workers’ comp claim. The majority of lawsuits arise from everyday employee relations that violate employment law. For example, harassment, discrimination, and wrongful termination are the top three claims that cost businesses billions of dollars each year.
In 2021 alone, the Equal Employment Opportunity Commission (EEOC) secured more than $484 million for workers in discrimination claims. Training employees and managers on proper conduct (and enforcing policies) can help stop issues before they escalate into expensive legal battles. Training and enforcing policies clarifies what’s acceptable and what isn’t, which cuts down on risky behavior. But it only works when policies are enforced.
It’s not just employees who need training. Managers often handle complaints, discipline, and termination incorrectly, which leads to wrongful termination lawsuits. This can be avoided by training management on how to handle issues legally.
Training keeps businesses compliant with industry regulations
Whether it’s OSHA, HIPAA, or GDPR, compliance can be a minefield. Violations – even small ones – can lead to lawsuits, fines, and investigations. However, training employees can give them the knowledge needed to stay compliant.
Compliance with industry-specific regulations is a must. For instance, healthcare companies are required to comply with HIPAA. Violations can cost up to $1.5 million, depending on the severity of the issue. Most violations are caused by mistakes that could have been prevented.
The best way to approach training is to document and keep all training records for every employee, even after they leave the company. When regulators come around for an audit, this documentation will show that your company did its part to stay legally compliant. It may not completely eliminate legal action, but it can reduce the burden of being found negligent.
Having this documentation on hand also strengthens your legal defense should you find yourself named in a lawsuit. When you can prove employees were trained properly, it’s harder for the other side to argue negligence.
Training lowers the cost of disability and accommodation claims
Failing to properly train managers and staff on disability rights can lead to massive lawsuits. Companies often underestimate how costly these violations can be until it’s too late. This was an expensive lesson for Western Distributing when they settled a disability discrimination lawsuit for $919,000 in June 2025. The company was caught terminating employees who couldn’t return to full duty after taking medical leave, implementing arbitrary weight requirements, and failing to make accommodations required by law.
The Americans with Disabilities (ADA) act requires employers to make reasonable accommodations for employees with disabilities, and training staff and managers to follow the law is the only way to prevent discrimination lawsuits.
Training is your best insurance against legal claims
Untrained employees are lawsuits waiting to happen. Whether it’s a forklift accident, a harassment claim, or a compliance fine, the cost of thorough training is minimal compared to the cost of legal action. Proper training prevents the accidents that turn into lawsuits, stops bad behavior, develops good habits, ensures compliance, and protects you against claims of negligence.
For companies seeking to minimize legal and financial risk at every level, there’s no better investment than a comprehensive training program for teams of employees and managers.