The challenge is that in some states, employer suits attorney fees are paid by the employer. So employees can hire an attorney on spec to threaten the company,

The challenge is that in some states, employer suits attorney fees are paid by the employer. So employees can hire an attorney on spec to threaten the company, and say "pay us less than the cost for you to defend this suit and win, and we will go away". So you put the company in a situation where: - if they win they are out maybe -$100k - if they lose, they are out maybe -$250k (Assuming the dispute is about $50k). And in many areas companies must hire attorneys to represent them. They can't represent themselves. I'm all for resolving actual issues, and I think the solution here is: - make it so parties do not need to hire attorneys - use things like fairclaims.com to arbitrate (must faster and cheaper)