Why Employees Sue and How You Can Safeguard Your Business

Learn the most common reasons why employees sue and find out how you can protect your business.

In recent years, its seems like legal action is the first response to any issue that might arise between two parties.  This trend is certainly true for business and their employees.  While there are many reasons why an employee might choose to sue their employer, certain reasons are more prevalent than others.  Here are some of the most common reasons why employees sue and how you can protect your business against such lawsuits.

1) Not Giving a Reason for Firing

Even if you know that an employee isn’t living up to your expectations, most employees perceive themselves as model workers.  That’s why if you fire them without giving them a specific reason, they will make their own reason.  These made-up reasons can be extremely dangerous if you are taken to court.  To prevent this from affecting you and your business, make sure your reasons for firing an employee are clear.

2) Poor Timing

Imagine that an employee files a complaint against an employer or supervisor and then is fired shortly after for a supposedly unrelated event.  In this case, it won’t be difficult for a lawyer to connect the two events together.  While it’s up to you how you want to handle employee complaints, if you do plan to discipline the employee, make sure you have all the necessary documentation to prove that the firing was fair.

3) Failing to Uphold Your Policies

It doesn’t matter how good your training programs are or how strict your policies are if you don’t follow them.  If an employee sues you for discrimination, harassment, or some other unethical business practice, then you better be able to prove that you and your supervisors have upheld your policies and training principles.

These are some of the most common reasons why employees sue.  If you would like to take additional precautions to safeguard your business, then make sure you have the proper insurance protections in place.  To get the policies your business needs, then contact the experts at Champion Commercial Insurance.  Our dedicated team is ready to get you the coverage you need today.

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