Employees are an essential component of almost every business operation. Managing the employer-employee relationship is important. However, at times these relationships may face issues that lead to litigation. Employment related lawsuits involve current or past employees who believe they have been wronged by their employer.
Here are some common mistakes that cause employers to end up in employment-related litigation:
- Lack of training. It is important that all managers have effective training on how to manage their employees. It is also vital that you understand and abide by all laws and regulations that govern the employer-employee relationship.
- Not Following the Company’s Own Policies and Procedures. All managers and employees must be required to follow the company’s established policies and procedures.
- Ignoring Employment Laws. Failure to follow employment related laws could result in more than just a lawsuit. Fines and penalties may also be imposed.
- Documentation. Documentation is a must for every business. Documentation can be a crucial piece of defense in the event of a lawsuit. Every action you take should have corresponding documentation.
- Not Using Employment Agreements. Professionally drafted employment agreements can provide clarity as to what is expected in the employer-employee relationship.
Standard commercial insurance policies may not cover employment related risks. Contact us today to discuss the importance of Employment Practices Liability insurance.