Is Your Company Really at Risk? The average employee lawsuit costs $250,000 which includes damages, costs and attorney fees. If settled out of court, then you might only be out about $40,000. Employment claims and lawsuits are among the most costly and time-consuming losses facing Businesses. Is your small business really at risk for employee lawsuits? The answer? Absolutely. Six out ten employers have faced an employee lawsuit. The reality is that employers have the power to resolve issues early before too much harm is suffered.