Best Practices for Avoiding Employment Lawsuits

Employee lawsuits can be time-consuming, costly, and disruptive to any business trying to keep their operations running smoothly. Employment lawsuits can negatively impact a company’s morale as well as a company’s reputation.

From harassment to wrongful termination, companies with at least ten employees have a 12% chance of facing an employee lawsuit. Avoiding these scenarios should be a prime objective of any business. By taking careful steps and creating a culture of accountability from the top, it’s possible to help lower the risk of employee lawsuits.

How to Avoid Employment Lawsuits

Businesses need to operate with a high level of awareness around employee liabilities and operational risks. Businesses that keep an eye on how their supervisors and company executives treat employees can maintain transparency and minimize claims potential.

Employment compliance is achieved by following specific steps, including:

  • Knowing the Laws and Rules: Before a company hires their first employee or expands their offices, they need to take some time to learn about the regulations they’ll need to comply with, and seek the best legal counsel to get them started on the right path. There are laws in place regarding hiring practices, rules, and regulations about safety in the workplace, anti-discrimination laws, and more.
  • Get Insured: Businesses need to identify their risk exposures and carry the proper amount of Employment Practices Liability A comprehensive Employment Practices Liability plan includes risk analysis that helps design the precise coverage required to defend companies against an employee lawsuit.
  • Define Job Success: For employees to be successful in their jobs, they first have to know how a management team defines success and conveys it to their employees. Some questions include asking how employees will know about quarterly performance, quotas, and company expectations? Employees should be informed of any changes to the company’s definition of success as the achievement of objectives is reached.
  • Provide Safety Training: There are numerous safety training programs for employees that can be completed online or in person. Employees need to be trained in safe work practices, and companies need to document each employee’s training. Managers should be encouraged to attend safety conferences to stay on top of trends as well.
  • Write Everything Down: Companies should maintain detailed employee records, a file of performance reviews, proof of the latest safety audit, and remediation training paperwork. This paper trail helps to provide the business with proof of action should any claims occur.

A company and its staff don’t necessarily have to do something wrong to be hit with an employee lawsuit. However, they can lessen the likelihood of a lawsuit and properly defend the business with well-documented business practices and comprehensive insurance coverage.

About Mavon Insurance

At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed, and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (855) 248-1480.