Regardless of the circumstances, a lawsuit filed against your company by a disgruntled employee is something you should try to avoid. Employment lawsuits, however frivolous and meritless, carry high costs and bad publicity, and the public generally loses interest before the court verdict proves that your company was in the right.

According to the Equal Employment Opportunity Commission, the number of charges filed against employers by current or former employees has skyrocketed in recent years, increasing from 6,000 in 2009 to a staggering 99,000 in 2010. Certainly, the stagnant economy and job market is partially to blame for the increase in employment law cases, but California employers should keep a few tips in mind in order to protect themselves from costly litigation.

First, only fight former employees' unemployment claims if you are positive that the company is in the right. Even if that is the case, think twice about filing an appeal if you lose the unemployment case at the hearing stage.

Second, do not hesitate to offer reasonable accommodations to ill or disabled employees as required by the Americans with Disabilities Act. If no such accommodation exists, help your employee obtain short- or long-term disability or Social Security Disability benefits, ensuring that they will remain financially sound while they are out of work.

Third, allow employees to exit the company gracefully. Don't try to withhold severance or make it difficult for them to secure future employment.

Fourth, if you find yourself defending against a lawsuit despite your best efforts, then take the EEOC's offer to mediate the claim. This will keep many of the details about the case - and your company - out of the press.

Source: Employment & Labor Insider, "To guarantee an employee lawsuit, just follow these five 'worst practices'," Robin E. Shea, August 12, 2011