5 Reasons Employees Sue & How To Protect Yourself

As a business owner, you’ll want to protect your company from disgruntled ex-employees.

Business owners can employ large workforces to small teams of people. With that said, if employees have felt that they have been wronged in some way, usually take action against your company. With the rise of litigations comes more lawsuits and ever-developing ways to protect yourself and your business.

More and more businesses are gaining coverage to protect their reputation, finances, and further damage from such lawsuits.

Below are the top 5 reasons why employees sue your company (and how to protect your company!)

  • Not giving a reason for firing. If you’re an at-will employee, you can fire at will, right? Wrong! Most employees think that they’re great workers, and if they get fired for an unbeknown reason, they’ll make up their own reason – or their lawyer will. The reason for termination needs to be clear.
  • Firing an employee for a bad performance when the employee has good performance reviews. In contrast to the above situation, supervisors need to understand that they’ll need a performance paper trail if they want to fire someone.
  • Bad timing. An example of this is when an employee files an internal complaint about the employer or a supervisor, and then is disciplined for an unrelated event. Employees who file complaints can, of course, be disciplined, but the supervisor better have the documentation in order before making the move.
  • Out of control greed. For example, if the owner of the company drives a brand new Ferrari but tells an employee that the company cannot afford to give him a raise from $9 an hour to $9.15. Should that employee get fired, they’ll likely call a lawyer for this unjust work environment.
  • Failing to follow policies. You can have the best policies and training there is, but supervisors must be able to show that they followed these policies and applied the training.

Fortunately, commercial insurance can help mitigate costs, should a lawsuit end up on your business’ doorstep. Ensure that your HR and legal teams are doing their best to provide the proper protection and training, and secure your business with reliably commercial insurance for time and cost help defending your business.

Contact Martplan Insurance Agency in La Habra for all of your insurance needs in California today!