Employers are facing a shifting litigation landscape defined by more cases, greater risk, and longer time to resolution. Recent data from Lex Machina Employment Report 2026 highlights a clear shift: while some categories have stabilized or declined, others – particularly disability accommodation, FMLA, and discrimination claims – have statistically shown a continued rising trend in employment cases. The report also shows that federal employment lawsuits filed without counsel have more than doubled since 2021.
For employers, this trend signals more than just legal exposure. It represents a growing operational and reputational risk that requires a proactive, strategic response. Organizations must ensure their HR teams are properly prepared by maintaining up-to-date training or leveraging outsourced support to address complex compliance requirements.
A Surge in Disability Accommodation Claims
Disability accommodation litigation has experienced a dramatic rise in recent years. After remaining relatively stable from 2016 through 2022, filings began climbing sharply in 2023. By 2025, cases reached nearly 6,800 filings – a roughly 42% year-over-year increase and likely a record high.
One key driver behind this growth is momentum: large jury verdicts – some reaching eight figures – have encouraged more employees to pursue claims. As success stories grow, so does the willingness of plaintiffs and attorneys to litigate.
For employers, this creates a high-risk environment where even a single misstep in handling accommodations can result in significant financial and reputational consequences.
FMLA Litigation on the Rise
Family and Medical Leave Act (FMLA) filings are following a similar trajectory. After years of relative stability in the low 3,000s, cases surged post-pandemic, reaching 4,707 filings in 2025.
This rise reflects broader workplace realities of increased health concerns, caregiver responsibilities, and employee awareness of rights. HR teams need to know how to properly handle complex leave requests and return to work requirements.
Discrimination Claims Hit Historic Levels
Perhaps most striking is the rise in federal employment discrimination filings. Since 2022, claims have consistently exceeded historical averages, with 2025 marking a major milestone: over 20,000 filings – the highest level in at least 15 years.
These claims ranged from adverse employment actions, unwelcome conduct against protected classes, and retaliation claims. This surge in cases underscores a workforce that is more informed, more empowered, and more willing to take legal action when issues arise.
The Hidden Cost: Time and Complexity
Beyond filing volume, the duration of these cases presents another major challenge for organizations.
- Cases that go to trial often take nearly three years to resolve
- Even successful defenses through motions can take around two years
- While settlements are common, they still require significant time, resources, and legal expense
In other words, even when employers “win,” they often lose valuable time, money, and focus.
Why Outsourced HR and Workplace Investigations Are Critical
In this evolving landscape, reactive approaches are no longer enough. Organizations must shift toward prevention, consistency, and expertise – areas where outsourced HR and independent investigations provide a distinct advantage.
- Reduce Legal Risk and Costly Fines –Outsourced experts stay current on evolving regulations and case law, reducing the risk of expensive errors.
- Conduct Objective, Defensible Investigations – When complaints arise, how they are handled can determine whether a company avoids or invites litigation.
- Protect Your Reputation – In today’s environment, lawsuits don’t just stay in the courtroom—they often spill into public view.
The Bottom Line
The data is clear: employment litigation is increasing in volume, complexity, and impact. Disability accommodation, FMLA, and discrimination claims are no longer isolated risks, they are growing trends that demand attention.
Organizations that invest in team development, outsourced HR support, and professional workplace investigations are not just reacting to problems—they are actively preventing them.
In a landscape where a single case can take years and cost millions, proactive expertise is no longer optional. It’s a critical part of protecting your business, your people, and your reputation.
Statistics Source: LexisNexis’s Lex Machina Employment Report 2026
Frequently Asked Questions
Disability accommodation claims FMLA (leave-related) lawsuits Workplace discrimination and retaliation claims These areas have become more complex and are receiving greater legal attention. Greater awareness of employee rights Broader definitions of qualifying conditions A rise in high-value jury verdicts encouraging more filings Costly lawsuits and settlements Government fines or penalties Damage to company reputation Lower employee morale and retention Policy development and compliance Proper documentation and recordkeeping Handling accommodation and leave requests Advising on employee relations issues This reduces the likelihood of errors that can lead to litigation. Experience and expertiece Objectivity and neutrality Thorough, defensible documentation Increased credibility in legal proceedings This can help resolve issues early and strengthen your position if a claim arises.Frequently Asked Questions (FAQ)
Why are employment lawsuits increasing?
What types of employment claims are growing the fastest?
Why are disability accommodation claims increasing so quickly?
What are the risks of mishandling employee complaints or investigations?
How can outsourced HR help reduce legal risk?
What are the benefits of using a third-party investigator?