Suiting UpWith a new breed of professional plantiffs on the prowl, closely screening job applicants could save you lots of dough.

The payroll clerk you hired a month ago has sued your businessfor sexual harassment, alleging that her supervisor made unwelcomeadvances. The Equal Employment Opportunity Commission (EEOC)dismissed her claim as having no reasonable cause, but she suedanyway. Just defending the lawsuit could cost you $50,000 in legalfees, not to mention the time and effort required to gatherevidence. If you lose, it could cost far more. The plaintiff hasoffered to settle for $10,000. What should you do?

Hundreds of entrepreneurs would lean toward paying thesettlement just to cut their losses. And that's what a newbreed of con artists is counting on. Michael D. Karpeles, anemployment attorney with Goldberg, Kohn, Bell, Black, Rosenbloom& Moritz Ltd. in Chicago, explains that professional plaintiffschange jobs frequently with the chief intent of finding a grievanceand threatening to sue. "Seeking out potential litigation is afull-time job for chronic suers, who threaten legal action wheneverthey think there's the slightest hint of provocation that couldresult in a cash settlement," Karpeles says. "Itdoesn't matter if there's a legitimate claim; the perceivedthreat alone is often enough to prompt some companies tosettle."