Please ensure Javascript is enabled for purposes of website accessibility How To Prevent Employee Lawsuits - Pride Legal

A good work environment is essential to the workplace and for its employees. Unfortunately, there still may be some employees that are unhappy, no matter what the employer implements for the employees. These employees may even go as far as showing obvious displeasure with the workplace or even threatening with a lawsuit. According to a study done by Hiscox, 1 in 5 businesses are hit with a lawsuit from a former or current employee.

Having a healthy work environment is key to keeping lawsuits at bay. All businesses should fully abide by the law to be able to divert liability.

What are some ways to divert liability?

Not all workplace suits are able to divert liability. California law allows employers to avoid liability for discrimination or harassment cases if the workplace has a rigorous harassment policy. To be able to avoid liability for harassment or discrimination, an employer must have a group of Human Resources (HR) employees that other employees may go to report any misconduct. A group is required because a single person taking reports could develop favoritism towards an employee and could reject any legitimate claims by other employees. The group of HR employees must take all claims seriously and must thoroughly look through each claim and all the evidence surrounding it. If the group decides that there has been misconduct taking place, the appropriate action must be taken towards the employee that has been breaking the rules. If a business has all of these requirements, there’s a high chance the court will divert liability. However, an employer could not divert liability if an employee had been injured in the workplace, or if the employer themselves had been harassing an employee.

What are some reasons an employee would sue?

Employees who believe that they are being treated unfairly will use lawsuits as a tactic of retribution. It’s possible to tell which employees are unhappy and are planning to sue. Whether it just be based on their body language, the way they speak, or just have heard it. If that’s the case, it’s important that the employer hires a lawyer immediately and records all evidence regarding the matter. A major reason why there are many employee lawsuits claims against their employer is that the employer had failed to give a reason to why the employee had been fired. Another major reason is that the employer failed to diligently look into a claim. For example, an employee has been harassed and had filed a claim with their HR department. The employer delays the investigation, which could show the employee that their claim isn’t being taken seriously. That employee would then file a lawsuit and would have a stronger case against their employer since they had delayed their internal investigation. Another big issue employees have is if they had been harassed or discriminated against, but the punishment towards the other employee was minimal.

It’s important that a business owner implements proper policies and hire an HR team to ensure that there is no misconduct in the workplace. Implementing the right policies and the right teams help to create a healthy work environment free of harassment or discrimination. HR teams are great at minimizing employee lawsuits, as HR teams usually take the right steps and action when misconduct has taken place. Have an attorney look over the company policies to double-check that the policies are up to standard and all within the law. After maximizing profits for a business, the next step the owner should is to lower their liability.

How can I lower the chance of getting sued as an employer?

Establishing a harassment-free work culture is necessary for lowering the chances of an employer getting sued. Having rigorous policies and HR groups that take claims seriously is an enormous help to one’s business and workplace environment. It’s also important to have yearly or bi-yearly training exercises to remind employees that harassment or discrimination will not be tolerated in the workplace. Having trained employees on what is considered harassment and what is not is essential in keeping employees from harassing one another.

On the other hand, policies and HR groups can only do so much. Some people just either can’t control themselves or don’t care about the rules. This is where the Employment Practices Liability insurance policy comes into play. EPL protects businesses from employee lawsuits such as sexual harassment or discrimination cases. EPL insurance policies also have the ability to pay out a settlement to the person suing. The ranges of insurance are different, as some claims will hold a higher price than others.

Contact Pride Legal

If you or a loved one has been involved in an Uber or Lyft accident, we invite you to contact us at Pride Legal for legal counseling or any further questions. To protect your rights, hire someone who understands them.

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