Employee lawsuits: Handle with care

For many small businesses owners, the fastest way to deal with employee lawsuits is to settle. Giving in to the demands of the aggrieved party is seen as less of a problem than having to deal with litigation, even if the company did not actually break any laws.

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While many business owners may see legal hazards as a normal part of business, legal recourses are not the only way to handle matters related to employee complaints. Prevention is worth more than the cure and it is better for small companies to prevent issues from escalating to the point where court arbitration is necessary.

Knowing that the truth is on the company’s side should give the business owner an edge in handling employee complaints and lawsuits. This can be achieved by making sure that the company has complied to the letter with all the requirements of state and federal governments.

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Meanwhile, business owners should also ensure that all employee-related matters are handled with utmost care. Employees must know what is expected of them and they must also know when they are not meeting the company’s standards. While not required by law, small businesses can also document every instance of disciplinary action to help prove that termination, should it be the case, is justified.

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Finally, how erring employees are treated at the moment of termination can affect how they react to the notice. Taking measures to ensure that the employees feel the process had been fair can reduce friction and make the separation possibly amicable.

Atty. Evan Granowitz is one of the lawyers of the Wolf Group LA. Follow this Twitter account for more resources about business litigation.