Entrepreneurs are more likely to face a lawsuit from an employee than at any other time in history. DSS Law is working to protect employers from lawsuits by discussing the five most common employee lawsuits and what employers can do to avoid them.
A single lawsuit has the capacity to destroy a small business, even if you win. Entrepreneurs should make sure they have comprehensive insurance policies to limit damage and disruption.
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1. Retaliation Lawsuits Dominate the Statistics
Approximately 53% of all employee lawsuits were conducted as a result of retaliation. DSS Law says that not enough business owners understand the concept of retaliation within the legal profession.
Retaliation is the act of demoting, harassing, or firing a worker because they made a complaint. For example, if a worker files a discrimination complaint and the employer fires them, they may file a lawsuit for retaliation.
DSS Law, based in New Jersey, states that moral and ethical business practices can largely prevent these lawsuits.
To find out more about the company and its ethical position, visit https://www.dsslaw.com/teaneck/
2. Discrimination Suits
Discrimination is exactly what everyone would expect it to be. However, business experts state that most employers don’t understand that discrimination lawsuits can be filed against employees by third-party people.
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For example, a discrimination lawsuit may be filed by a customer who claimed that an employer made a joke about their national heritage.
This is why employers should invest in diversity and sensitivity training to prevent this.
3. Wage Law Violations
Wage law violation lawsuits tend to be filed in relation to unpaid minimums and overtime. These cases are so prevalent because every state is able to enact its own laws in relation to both of these things.
DSS Law recommends that business owners familiarize themselves with their local and state laws so they don’t fall victim to these lawsuits.
4. Tort Cases
Torts are a violation of the civil rights of an individual. An employee may sue for tort if they sustain bodily injury or their personal property is damaged. The easiest way to think of a tort case is negligence.
Thankfully, avoiding tort is easy. Comprehensive training programs, appropriate signage, and detailed health and safety policies are all actions that can be taken to reduce the likelihood of tort cases being lodged against the business.
5. Breach of Contract
Another common type of lawsuit, breach of contract is typically made by a contractor or employee. This tends to happen when you ask your employees to carry out responsibilities and roles not detailed within their contracts.
These lawsuits are more common between third-parties and the business, but anyone working under you may also sue for breach of contract.
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This is why it’s important to sign contracts with all your employees and never push them beyond what they were hired for.
While it’s difficult to avoid all lawsuits, most are easily avoided. Either way, the standard advice is to always have liability insurance and to enlist the services of a competent legal firm.