A rise in workplace discrimination and disability accommodation disputes pushed the volume of US federal employment litigation cases to the highest level in seven years, according to a Lex Machina study.
The 2026 Employment Litigation Report showed that the total number of federal employment lawsuits last year rose to 26,635, the most since 2018 and a 10% rise on the number of cases in 2024 – the third straight year cases have risen.
Last year’s increase was fuelled by a rise in disability accommodation lawsuits – claims where employers failed to provide reasonable accommodation to employees with disabilities – which rose by 42% to 6,796 cases. Employment discrimination cases also rose 16% to 20,265, the highest since at least 2009, Lex Machina said.
Lex Machina noted that the jump in disability accommodation litigation was likely down to long-term health issues related to Covid-19 and large damages awards in recent lawsuits that have spurred further claims. It added that the rise in federal discrimination claims was likely driven by case law developments that “reinforced certain routes of recovery for employment-discrimination plaintiffs”.
The volume of ‘pro se’ employment litigation claims – where plaintiffs file lawsuits without legal representation – surged by 35% last year to 4,388 cases, the highest since at least 2016. Those pro se cases represented more than 16% of all federal employment lawsuits in 2025. However, self-representation has consequences: where cases were decided on the merits, pro se plaintiffs lost at a ratio of more than 40 to one.
Meanwhile, Fair Labor Standards Act (FLSA) filings were broadly flat year-on-year at 5,704 and remain well below the 2016 peak of 8,742 cases. Lex Machina said the decline in FLSA litigation over the past decade may reflect employers’ compliance efforts, arbitration programmes and enforcement priority changes.
Eric Wright, senior vice president of Lex Machina at LexisNexis, said: “The Employment Litigation Report demonstrates a rapidly shifting liability risk profile for employers in the 2020s. From 2023 to 2025, employee claims on median took 1,021 days to reach trial, and courts approved nearly $2bn in settlement awards for employment-related class actions despite reductions in FLSA claims.”
A report published by employment law firm Littler earlier this month found that 71% of employers in the US have been affected by the Trump administration’s diversity and inclusion policy changes, with 65% also impacted by new immigration policy.
Meanwhile, a report in January published by TalentMLS found that 62% of employees at US companies believe misconduct is overlooked when top performers or leaders are involved, while 47% said their managers discourage employees from escalating harassment or discrimination complaints.
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