5 Tips to protect your business from employment Lawsuits
Hiring employees is a necessity for any business looking to grow and serve their customers. While there are benefits that come with hiring employees, there are risks as well. One risk is that you could be subject to employment lawsuits for a variety of reasons. Fortunately, there are five tips that you can follow to protect your business from these lawsuits.
Have Clear Policies
One of the ways that you can protect your business from lawsuits is by having clear policies in place. You should have very clear policies around hiring practices, employee relations, human resources, promotions, and compensation. This can ensure you have fair practices that all people can learn and follow. You should also ensure you are following any legal requirements and avoiding discrimination at all costs.
Another important tip is to have a proper education process in place. While you can have great policies, you need to ensure all people understand them and general best practices. Having a compliance training, diversity and sensitivity training and sexual harassment training at least once per year can prevent employees from making mistakes, which could open your business up to liability claims.
When you are going to hire employees, you need to ensure that you have adequate records in place. The HR files should include hiring, termination, and promotion reports, employee performance reviews, and employment surveys. You also need to keep records of any complaints that may have been filed throughout the year.
Have Proper Insurance
While following best practices is a necessary approach, you can also protect your business by having the right insurance policies and coverage in place. Commercial coverage will include a provision for liability insurance. This can ensure you have support if you are named negligent and liable for damages. It is important to have an experienced insurance coverage counsel to review and determine if your existing insurance coverages are adequate for your type of business.
Finally, it is always a good idea to hire counsel to help protect your business. For those that are in the area, Costa Mesa business lawyers can provide various services that will help protect your business from lawsuits and defend them if they arise. The team with Fortis LLP can provide the legal guidance necessary to help protect your business.
DISCLAIMER: This blog is intended solely for educational purposes and contains only general information. It should not be construed as legal advice and should not be treated as such. You must not rely on any information contained herein as an alternative to legal advice from your attorney or from other professional legal service providers. If you have any specific questions, you are welcomed to retain an attorney from Fortis LLP or seek legal advice from another attorney of your choosing.