Internal complaints and allegations can quickly snowball into costly lawsuits. That’s why it’s crucial that HR professionals know what to do to ensure compliant investigations, according to two speakers at SHRM25 in San Diego.
With more than 70,000 Equal Employment Opportunity Commission complaints filed annually and average settlements ranging from $40,000 to $300,000, the pressure on HR teams to conduct thorough, defensible investigations has never been higher.
The key to avoiding punitive damages — awarded when an employer acts with “malice or reckless indifference” — is a strong, timely response. Acting promptly is “going to save you from those punitive damages claims,” said Lindsay Massillon, an attorney with Fisher Phillips.
A recent court case underscores this principle. In Harris v. FedEx Corporate Services Inc. (2024), a jury initially awarded punitive damages to the plaintiff. However, the 5th U.S. Circuit Court of Appeals later reversed the ruling, finding that FedEx conducted an in-depth HR investigation, which included interviews, documentation, and detailed analysis, each time the plaintiff made an internal complaint. The company’s proactive approach paid off.
A solid investigation doesn’t just protect an employer in court — it prevents small problems from becoming major liabilities. But to be effective, investigations must follow a clear and thorough process:
1. Identifying the Right Type of Complaint
HR should begin...
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