The Harvey Weinstein Effect
Starting with the floodgates that opened with the alleged egregious actions of Harvey Weinstein, headlines across the U.S. feature claims of sexual harassment, assault and misconduct with news stories literally breaking by the hour. Last week, various politicians, business executives, and entertainers like Mariah Carey, Louis C.K., Bill and George Takai were all named as alleged "bad actors" in cases as much as several decades old. While these cases make good headlines because they involve millionaires and celebrities, the specific accusations made are common to many of these types of claims against businesses just like yours.
With so many victims coming forward in a national movement (#metoo) and aggressively outing and suing those responsible a media feeding frenzy has ensued. Medical practice owners must be more vigilant that ever about protecting their employees and their businesses.
We have covered employment risk management from many different angles in the past and have shared statistics including that the average national sexual verdict is currently just over half a million dollars. Bill O'Reilly from FOX news reportedly personally paid $32 million to settle a single claim and his employer FOX as an entity has paid out $45 million dollars on sexual harassment since the middle of 2016!
Think Beyond Lawsuits and Money
As staggering as the financial numbers are, they are not the worst consequences of this behavior and claims. These real economic losses will be compounded by legal fees (easily six figures) and loss of income and assets that results from the factors below. Should you or your practice act in a way that is abusive, unprofessional and potentially illegal, you can expect the following results.