How to Help Avoid Employee Lawsuits

A lawsuit by an employee is one of the most troublesome and expensive experiences a business owner can encounter. As a former Human Resources professional I was frequently asked how to help avoid a lawsuit by an employee. My response is that there is no hard and fast rule. Laws are always changing and you can not be everywhere at the same time. Rather there are common sense approaches that can help curb a lawsuit from an employee.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Good communication skills
• Common sense approach

1. Be aware that you cannot avoid every situation that can lead to a lawsuit. Rather you will need to maintain a proactive attitude. Be alert and create good communication with your employees.

2. Train your employees and managers on the laws and effective communication. You should also attend if you need further training in this area. Some states such as CA requires sexual harassment training be conducted periodically. Check you local government website for more information.

3. Be organized. Make sure your employee files are well organized. The accounting side should also be accurate. This will come in handy if an employee sues for a wage dispute.

4. Do not over react or readily dismiss employee complaints. Make sure you understand the issue behind the complaint before you file it away or make it bigger than it is. Make sure you fully listen to the complaint before you take action. Ask the employee to put their concerns in writing.

5. Document complaints or incidents accurately and factually. A final decision on any decision or any issue should be based on facts. Please remember to remain objective when dealing when an employee or making remarks in an employee's personnel file.

Tips & Warnings

• Remember that any action you take regarding an employee complaint or issue should be to mitigate any losses for the company.