[metabagel]

What makes it even more perplexing for me is that most companies require you to sign an arbitration agreement, which significantly reduces both the cost of a legal conflict as well as the risk of an extreme verdict being rendered.

And yet, my perception is that companies often resist terminating problem or unproductive employees due to the perceived risk of being sued.

Discriminating against a member of a protected class is against the law, so perhaps they are worried about being accused of that?