Businesses are often more vulnerable than private individuals when it comes to legal action against them. Most businesses will have to deal with some kind of legal issue within the life of the company. Lawsuits against businesses can be filed by employees or customers. Here are some of the most common lawsuits that people file against businesses and a few tips to help business owners protect their organization.
One common lawsuit seen in courtrooms against businesses is discrimination. Some companies may have to face discrimination lawsuits against current or former employees, and other companies are sued by customers for discrimination. It’s important to be proactive and follow all of the federal guidelines when it comes to hiring and civil rights. Additionally, training employees to treat all customers equally can help lower the risk of this type of lawsuit.
Wrongful termination is another common legal action against businesses. In fact, wrongful termination lawyers report that there has been a major increase in wrongful termination cases in the last 20 years. It’s important for managers and business owners to make sure they follow all federal and state hiring practices when letting go of employees to make it less likely a company will be sued.
Injury lawsuits against businesses are also seen in the legal world quite often. Typically, each state requires a business to carry workman’s compensation insurance to help deal with potential workplace injuries and the medical costs associated with them, but some businesses have been financially devastated by injury lawsuits. To avoid a potentially disastrous lawsuit, make sure there is an employee safety program in place with scheduled safety meetings.
Wage lawsuits are also commonly filed against companies. Many of these suits are related to disputes about overtime pay or minimum wage. Business owners should aim to make all salary information transparent by putting everything in writing. Companies may not be able to avoid all types of lawsuits, but focusing on doing the right thing could help lower a business’s chances of losing everything.