Could a lawsuit cost you your business?

As a business owner, you know that employment issues never stop. It can be emotionally frustrating when an employee hits you with a lawsuit, not to mention time consuming and expensive. By not having the right policies and procedures in place to protect you, you might jeopardize your company and its reputation.

Here are five ways you can protect your business from a lawsuit:  

  • Document everything, including working hours, performance, discipline and leaves of absence. Set clear expectations from the beginning. Confirm everything in writing and have it signed and easily accessible in case a conflict arises. 
  • If you don’t already have an Employee Handbook or it hasn’t been updated in a while, you might want to consider hiring an employment attorney to help you create one or update what you have. 
  • Regularly train your staff on their specific duties as well as your company’s policies and procedures. This ensures that your workplace remains productive and safe. 
  • Don’t leave your company exposed. Even with the best policies and procedures, you might run the risk of a lawsuit if they are not followed. It is your responsibility to ensure that all policies are consistently implemented. Don’t leave room for exposure. 
  • Hire an employment attorney. Keeping one on call to spot potential legal issues can save you time and money and ensure that you’re compliant and up-to-date with ever-changing employment laws. Don’t wait until you are sued to contact an attorney! It is far easier and less costly to prevent a lawsuit than it is to defend one.

These tips might seem obvious, but details that might get you into a sticky situation can easily be overlooked. As a business owner, it is your responsibility to limit risk and keep your business running smoothly. While taking these steps might not stop an employee from suing you, they can help mitigate the monetary and reputational damage, as well as disruption to your business.

If you’d like to learn how we can help you create or update your employment policies and procedures through our subscription plan, click here.  If you need help right away, don’t delay, give us a call at 973.787.8442

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