5 Ways To Protect Your Business From An Employee Lawsuit

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Information about 5 Ways To Protect Your Business From An Employee Lawsuit
Business & Mgmt

Published on February 27, 2014

Author: stezo71

Source: slideshare.net

Description

Here are 5 Tips On How To Protect Your Business From An Employee Lawsuit. This was created specifically for California employers and business owners.

5 WAYS TO PROTECT YOUR BUSINESS FROM EMPLOYEE LAWSUIT CaliforniaEmployerAttorney.com admin@californiaemployerattorney.com

PREPARATION IS KEY • Its important to have systems in place! • Have written policies and procedures for everything • Have a policy that all employees acknowledge your procedures • Preparation will cost you a little time and money but will be worth it • If you are ever involved in a lawsuit you want as much evidence as possible • Even if you are never sued, you will have more peace of mind

TIME KEEPING

#5 – ACCURATE TIME-KEEPING • Have official time-systems in place • Make sure your systems are electronic so they are easily retrievable • Also make sure you keep an electronic record of paychecks • Make sure the timekeeping and payroll data is kept secure

TERMINATIONS

#4 – PROCEDURE FOR TERMINATIONS • California is “At-will” employment state • Employee or employer can part ways without reason • BUT some terminations don’t fall under “at-will” • Wrongful Termination case can come from • Discrimination: firing someone in a “protected class” for that reason • Firing for taking protected time off • Retaliation Firings • Have Documented Set Procedures for Terminations

COMPLAINERS

#3 – GRIEVANCE SYSTEM • Have a grievance system in place • When an employee complains take it seriously • Your system should include official procedures for filing complaints • Employees have a way to report incidents to their supervisor • If the complaint is about their supervisor they have an alternative

INDEPENDENT CONTRACTOR VS EMPLOYEE

#2 – CLASSIFY EMPLOYEES CORRECTLY • Independent contractors • No payroll taxes, no wage laws, do not have to pay overtime • Employee • Fall under all strict labor laws, overtime and mealbreaks, wages and taxes.

HAVE PROFESSIONAL HANDBOOKS

#1 EMPLOYEE HANDBOOKS • The best & least expensive way to reduce risk of an employee lawsuit • Many employees wont continue just because there is a handbook! • Before filing a complaint most employees will check the handbook first • If you have a procedure in place it may be dropped there • Often employees misunderstand policies, need somewhere to refer to

CONCLUSION • California leans heavily towards the employee • There are some easy steps you can take to reduce your risk of lawsuit • Even with procedures you can still get sued BUT better chance of winning • Take action TODAY. Spend a $100 dollars on a handbook

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