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5 Mistakes That Could Drag Your Business into a Lawsuit

Anica Oaks

July 02, 2015

You may think that you are very conscientious about the way you run your business. Yet even if you do everything you can to obey the law and treat your employees fairly, you could be unknowingly making mistakes that could result in a lawsuit. Let's look at five of the most common mistakes that could get your business into legal trouble.

1. Discriminating During the Hiring Process

You could be unwittingly setting yourself up for a lawsuit because of the way you hire employees. Discrimination can apply to many different categories, including gender, age, sexual preference and pregnancy status. For example, if you ask a job applicant's age or specify that you want someone “young,” “male” or “female,” you could be accused of discrimination.

2. Letting Employees Make up Time

It may seem like a nice thing to do, but letting employees make up for time can be problematic. For example, if you let employees work through the lunch hour so they can go home early, you are technically violating their right to a 30-minute meal break.

3. Terminating an Employee During a Leave of Absence

If you terminate an employee due to an extended illness or because she is pregnant, you could be sued. Other reasons for which employees are protected from taking time off from work include military service, such as the National Guard and jury duty.

4. Not Paying Overtime

As an employer, you must be careful about letting employees work longer than their regularly scheduled hours unless you are paying them overtime. This also applies if you allow employees to make up time from one week to the next or let them work longer hours to have four day weeks. Always check with state labor laws or with a qualified law firm like Sattiraju Law Firm, PC, before changing employees' hours, even if they request it.

5. Not Having a Clearly Defined Policy Regarding Harassment

It's essential to have a written policy on issues such as sexual harassment and discrimination and to provide training in these areas to all employees, especially managers. This won't necessarily prevent all problems, but it can protect the business owner if someone does claim harassment on the job.

Businesses can be sued for many reasons. While it's impossible to foresee every possible scenario, keeping the above tips in mind can help you avoid many of the most common causes of lawsuits.

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