Many employers experience shock when an employee makes a legal claim based on an unfair or illegal employment practice. In reality, these types of claims have grown increasingly common. Even companies who employ just a small number of people need to give serious consideration to what they can do to proactively address potential claims.
One of the best ways to protect against employee lawsuits is an insurance policy specifically geared towards this type of risk. It can help a company pay for the most significant expenses associated with claims such as legal costs, or court-ordered damages.
Human Resources Management
Companies need to have thorough HR policies that are fully compliant with all state and federal laws pertaining to employment. Human resources personnel need a strong experiential background, and they need to stay apprised of developments in this area of the law.
Employees at every level of a company need to be aware of key policies and expectations about conduct in the workplace. One employee’s actions could expose a company to serious liability.
Ultimately, companies should periodically review their current policies and procedures regarding issues such as wage and hour laws, discrimination, and harassment. Avoiding claims by employees will help to sustain a positive company culture while also sparing companies from considerable expense.