How to Avoid Employee Lawsuits

A disgruntled employee or ex-employee has the ability to put a company in danger. Avoid Employee Lawsuits, RSC Accounting, Tax & Consulting Services, Auburn, MAIf the company has not followed every single law flawlessly, an employee lawsuit has the potential to emerge. An employee lawsuit not only eats away at the business owner’s valuable time, but lawyer fees and payouts could potentially affect the overall well-being of the company. Employee lawsuits have also proved to have the ability to negatively affect the reputation of the brand, which is why it is so vital for employers to do everything in their power to completely avoid employee lawsuits.

Fortunately, there are ways in which a business owner can implement preventive measures to hopefully avoid employee lawsuits altogether. The following article from Rush on Business describes how to best avoid employee lawsuits.

Seven Ways to Avoid Employee Lawsuits

Employment lawsuits are continually on the rise.  Here are seven things that may help you avoid employee lawsuits:

1.  Treat Employees with Respect:  Seems like a basic philosophy but it is amazing how many employers forget to treat their employees with respect.  Employees that are humiliated or treated in a disrespectful way are much more likely to sue your company.

2.  Communicate with Your Employees:  First, make sure you have an effective employee handbook with up-to-date employment policies and publicize your policies to employees.  Make sure you follow your policies.  One of the easiest ways to land in an employee lawsuit is the failure to follow your employment policies.  Also make sure you have an open door policy where employees are allowed to voice their concerns or complaints.  Do not let complaints fester.  Deal with them right away.

3.  Implement an Effective Unlawful Discrimination and Harassment Policy:  Your harassment policy should include more than just sexual harassment.  There may be other forms of harassment based upon race, religion, age or disability.  It is also critical to consistently train employees and supervisors regarding unlawful harassment and discrimination.  You should consider training employees on harassment and discrimination issues at least once every year.

4.  Document, Document, Document:  The importance of good record keeping cannot be overstated.  If you don’t have something in writing, chances are a jury or judge may not believe it happened.  Be sure to document even verbal warnings and maintain an appropriate personnel file in order to make sure the documentation is not lost.

5.  Conduct Honest Employee Evaluations on a Regular Basis:  Unless your company is headquartered in Lake Wobegon every employee is probably not above average.  Evaluations can be valuable proof in an employment lawsuit.  Make sure poor performance is properly documented.  Otherwise, the judge or jury will not believe you when you say the employee performed poorly but all their evaluations are excellent.  You should conduct the evaluations on a regular basis, usually at least once per year.

6. Do Not Retaliate:  Employers are often blindsided by retaliation claims.  There are a number of proactive measures you can take in order to avoid liability for retaliation claims.  It is important to avoid retaliation because recent cases have lowered the burden for plaintiffs to prove their retaliation claims.

7.  Take Action and Investigate Promptly: If a complaint arises, make sure you take the complaint seriously and investigate promptly.  A quick and thorough investigation may help eliminate problems before you have a real mess.  You will need to consider who should conduct the internal investigation.

These simple steps will go a long ways to reducing employee lawsuits.  To ensure that your company has done everything it can to avoid employee lawsuits, you should have your employment policies, training and practices reviewed by your employment lawyer.

The most effective way to protect your company from employee lawsuits is through policy implementation and clear, open communication with all subordinates. Proper documentation of any incident is also important. Keep all email communications with employees and even screen-shot anything work-related that they post on their personal social media pages if it is at all relevant. The key to being able to avoid employee lawsuits is ensuring that all of the above preventative measures are in place. While it is impossible to control the actions of others, laying the groundwork for a winning case is the best way to avoid employee lawsuits.

If you would like further assistance on how to avoid employee lawsuits, our litigation support experts can help. Contact us at Rauker, Scheinfeldt, and Company. We can help your business avoid employee lawsuits and the litigation fees that come with it.

Do you think employee lawsuits are more common among certain types of businesses—large vs. small, a strict boss vs. a lax one, etc.? We would like to hear your thoughts in the comment section below.

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