Generative artificial intelligence (AI) is changing the way people work, including how employees pursue employment-related lawsuits. With AI tools now able to help users research legal issues, draft documents and navigate court procedures, it has become easier than ever for individuals to file lawsuits without an attorney.

For employers, this growing trend creates a new consideration when managing Employment Practices Liability Insurance (EPLI) and workplace risks.

The number of workplace related lawsuits is on the increase.  Particularly, “Pro se”, or cases where individuals represent themselves in court rather than hiring an attorney are more prevalent. Several factors are making these claims more accessible:

• Lower costs: Hiring an attorney can be expensive, especially when a potential claim involves relatively modest damages. AI tools can significantly reduce the cost of preparing legal documents.
• Easier document preparation: AI can help generate complaints, motions and other legal documents that look professionally written, even when the underlying legal arguments may be weak or inaccurate.
• Help navigating procedures: Employment lawsuits often involve strict deadlines and procedural requirements. AI can explain these requirements and help individuals understand the steps involved in filing a claim.
• Less legal screening: An attorney may decline to pursue a case after determining that it has little merit. AI generally does not provide the same level of professional judgment or case screening, potentially encouraging more marginal claims to move forward.

The result is that more individuals who might previously have abandoned a potential claim may now have the tools to pursue it. While self-represented plaintiffs often have difficulty succeeding on the merits, that does not necessarily mean their lawsuits are inexpensive for employers to defend.

AI-assisted filings can be lengthy, detailed and filled with legal citations. Defense attorneys may need additional time to review allegations, verify citations, identify procedural issues and respond to numerous motions or filings. Even when a claim is eventually dismissed, the employer may still incur significant legal defense costs. Some pro se cases can also remain open longer, increasing the amount spent on defense. For employers and their insurers, the key issue is that a claim does not have to be successful to be expensive.

Steps Employers Can Take to Reduce Risk

Strong employment practices and good documentation can help employers respond effectively when a claim arises.

Keep Policies Current

Maintain clear, up-to-date employee handbooks and policies covering discrimination, harassment, retaliation and employee complaints. Employees should acknowledge that they have received and reviewed these policies.

Document Employment Decisions

Maintain thorough personnel files, disciplinary records and complaint documentation. When making disciplinary or termination decisions, document the legitimate business reasons at the time the decision is made.

Apply Policies Consistently

Employment decisions should be handled consistently among similarly situated employees. Inconsistent treatment can create opportunities for employees to allege discrimination or retaliation.

Train Managers and Supervisors

Managers should understand how to properly handle employee complaints, accommodation requests, disciplinary actions and terminations. Regular training can help prevent mistakes that may lead to costly disputes.

Create a Clear Complaint Process

Employees should have a straightforward way to report workplace concerns, including an option to bypass their direct supervisor when appropriate. Complaints should be investigated promptly and consistently.

Involve HR or Legal Counsel

Consider involving HR or legal counsel before making higher-risk decisions, such as terminations, demotions or decisions involving accommodation requests.

Respond Carefully to Legal Threats

Demand letters, legal inquiries and threats of litigation should be forwarded to appropriate legal and insurance professionals promptly. Informal responses can potentially create statements that may later be used against the employer.

Protecting Your Business With EPLI

The rise of AI-assisted pro se litigation highlights the importance of both risk management and adequate EPLI coverage.  Employment claims can be costly even when they ultimately fail.  Employers should work with their insurance professionals to review their EPLI policy limits, defense-cost provisions, exclusions and other terms to make sure their coverage is appropriate for their business.

The best approach is to combine strong workplace practices, thorough documentation, employee and manager training, and appropriate insurance protection. As AI continues to make legal processes more accessible, proactive employers can reduce the likelihood and potential cost of employment-related claims—and be better prepared if a lawsuit does arise.

 

About Gray & Associates Insurance Group

Gray Insurance Group is a locally focused insurance agency based in Richland, Michigan, proudly serving individuals, families, farmers, and businesses throughout Kalamazoo County. Led by Farm Bureau Insurance agent Barry Gray, the agency takes a personal approach to insurance, helping clients understand their options and find the right protection for what matters most. From home and auto to life, business, and farm insurance, Barry and his team provide clear guidance, build strong relationships, and tailor coverage to each client’s needs. At Gray Insurance Group, insurance is about more than policies. It’s about being a trusted local resource clients can count on when they need it most.