For the love of your business

Q&A: How can I prevent from lawsuits from my employees?

Clarifying Questions

QUESTION

Q: How can I protect myself from lawsuits from my employees?

—Concerned CEO

 

ANSWER

A: Dear Concerned:

Although you may not like to think that one of your team would ever sue you, your employees (and contractors) are among the most likely sources for litigation. The most common lawsuits arise when a team member needs to be let go, and he or she feels mistreated in the process.

One way to protect yourself from employee lawsuits is to put in place sound employment agreements and have everyone you hire, without exception, sign an agreement. The agreement should clearly detail the working relationship’s terms and conditions and outline your expectations for the relationship, establishing metrics for success and time frames for specific goals and objectives to be achieved.

Next, you should establish clearly defined policies detailing your procedures for hiring, discipline, termination, and dispute resolution, and make sure that these processes are used consistently with every team member.

Finally, you should also purchase employment-practices insurance. This coverage protects lawsuits initiated by your employees, and it can help pay for damages and/or lawyer’s fees if a team member ever sues you.

From creating sound employment agreements and advising you on the appropriate insurance coverage to helping you establish workplace policies and procedures, as a Personal Family Lawyer® with family business planning expertise, we can support you in creating a solid plan to protect your personal and business interests.

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