When someone uses the phrase "So sue me," they’re really saying, "I know you’re not going to sue me, so you might as well just deal with my terrible behavior." What they often don’t realize is that them uttering the challenge might make you realize that you actually do want to sue them after all and, further, that you can sue them. So, whereas before, you might have just been happy enough to walk away, now you’re going to want to take them to task.
So, if you’re going to tell someone to sue you, you’d better make sure they don’t actually have a case… And you’d better be extra sure that they aren’t privy to all the illegal things you have been doing. Well, this is exactly something that this less-than-honest employer didn’t consider when he challenged this military veteran by asking him, "You gonna sue me or something?" after the veteran had long put up with his illegal business practices of underpayment, tax fraud, and a long dirty laundry list of bad behavior. It was time to set things straight, and suing was exactly where he was going to start, but that’s not where things were going to finish.