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Admin 04-24-2025 Civil Litigation

In employment litigation, blame isn’t always one-sided. Learn how crossclaims help defendants shift liability, protect their interests, and reshape the dispute.

Crossclaims are a powerful but often overlooked tool in employment litigation. When multiple parties—like employers, supervisors, staffing agencies, or contractors—are pulled into the same lawsuit, a crossclaim allows one defendant to assert claims against another defendant to clarify fault or seek reimbursement. From wrongful termination to wage disputes, crossclaims can redefine strategy, shift liability, and expedite settlements.

Here’s how to use them effectively in employment-related cases.

What Is a Crossclaim in Employment Disputes?

A crossclaim is a legal claim brought by one defendant against another co-defendant in the same lawsuit. In employment disputes, these claims typically arise when one party believes another is partially or wholly responsible for the allegations at hand.

Examples include:

  • An employer crossclaiming against a supervisor accused of misconduct

  • A staffing agency crossclaiming against a client company for unpaid contributions

  • A contractor seeking indemnification for harassment allegedly caused by an employee it didn’t supervise

When Are Crossclaims Used in Employment Litigation?

1. Wrongful Termination

An employer may file a crossclaim against a co-defendant whose actions (e.g., false reports or sabotage) led to the firing.

Example: The employer alleges the plaintiff’s manager fabricated misconduct reports that triggered the termination.

2. Discrimination or Harassment Claims

If an employee sues the company, the employer might argue the harasser (another defendant) acted outside the scope of employment, triggering a crossclaim.

Example: A company claims the supervisor committed harassment in violation of policy and seeks indemnity.

3. Wage and Hour Violations

Where third-party payroll vendors or staffing agencies are involved, crossclaims can target these entities for improper classifications or underpayment.

Example: A retail chain blames a contractor for misclassifying employees and crossclaims to offset liability.

4. Breach of Contract or Non-Compete Disputes

When multiple business relationships influence an employment issue, crossclaims can assign responsibility for the breach or help clarify who should have enforced key terms.

Example: The employer crossclaims against an HR consulting firm that drafted an unenforceable severance clause.

How Crossclaims Impact the Employment Litigation Process

1. Clarifying Liability

Crossclaims help courts (and juries) determine who is actually responsible for the employment violation.

This avoids blanket blame on the employer when misconduct stems from specific co-defendant actions.

2. Encouraging Internal Settlements

Defendants can resolve liability among themselves through crossclaims—either formally in court or informally via settlement talks.

This reduces the plaintiff’s leverage and often accelerates resolution.

3. Streamlining the Case

Crossclaims consolidate disputes into a single case, promoting judicial economy and minimizing duplicative lawsuits.

4. Strengthening the Defense

When employers shift fault to individual actors (e.g., rogue managers), they reinforce their compliance posture and reduce reputational risk.

How to Use Crossclaims Strategically in Employment Disputes

Seek Indemnity or Contribution

If your co-defendant is contractually or legally responsible, file a crossclaim to seek reimbursement or shared damages.

Especially useful in joint employer or independent contractor contexts.

Shift Financial Responsibility

If another party’s conduct directly caused the harm, crossclaims can reduce or eliminate your share of the liability.

Example: An employer shifts blame to a third-party training vendor that misinformed employees about overtime pay.

Use as Settlement Leverage

Crossclaims add pressure to co-defendants. No one wants to face a double-barreled lawsuit.

Threatening or filing a crossclaim often leads to behind-the-scenes negotiation among defendants.

Sample Scenarios

Case Type Example Crossclaim Harassment Employer crossclaims against a supervisor for personal misconduct Misclassification Staffing agency crossclaims against employer for failing to report hours Breach of Contract Employer crossclaims against outsourced HR vendor for drafting flawed employment terms Termination Employer crossclaims against whistleblower co-defendant for bad-faith allegations

Final Thoughts

In employment disputes, crossclaims aren’t just procedural—they’re strategic. They help clarify liability, control litigation costs, and protect your position, especially in multi-party lawsuits. Whether you’re trying to reduce exposure, bring in the true responsible party, or negotiate a better settlement, crossclaims can be a key part of your litigation toolkit.

Let Legal Husk Help You Navigate Crossclaims with Confidence

At Legal Husk, we draft and defend crossclaims that reshape employment litigation. From contribution to indemnity to shifting liability, we help you protect your interests.

📌 Need help with an employment case involving multiple parties?
Let us assess your options and craft the right crossclaim strategy.

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Crossclaims aren’t just reactive—they’re strategic. Draft them smartly with Legal Husk.

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Ready for a court-ready crossclaim at a predictable price? Contact Legal Husk and let us draft your next crossclaim with precision and clarity.

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