Avoiding Employment Lawsuits and Claims

To avoid employment lawsuits and claims, employers and company owners should create a policy that is in line with the law.

They should also make sure that the employment contract and company policy will not violate the rights of workers and protect them from all forms of discrimination, harassment, and abuses.

There are many federal and state laws that uphold the rights of workers and protect them from any kind of discrimination based on gender, race, color, national origin, sexual orientation, religion, age, and disability.

Because most employment laws are made to protect the rights of workers, the US has been considered as a pro-labor society in which people will be given equal employment and economic opportunities.

With strong pro-labor laws, it is important for employers and company owners to operate in a way that they will not violate the rights of workers or else they may face lawsuits and claims which are usually expensive. In some cases, the courts may have stiffer penalties such as suspension of the businesses license or even imprisonment.

This is the guideline to avoid lawsuits and claims:

Create company policies in line with the law

Employers have the right to create their own company policies as long as these are legal under the federal and state laws. With these policies, workers will know their responsibilities, duties, and expected behaviour; they will also know the consequences for violating a guideline or failing to do their obligations.

Create an employment agreement

The employment agreement is a written contract between workers and employers. While this agreement also states the duties and responsibilities of employees just like in a company policy, this contract is more extensive because it includes the benefits and compensations, leaves, insurance policies (in case that this is provided by the company), and other important terms of employment.

Seek alternative ways to resolve a dispute and include these in the employment agreement

Because court litigation is expensive and can drag for many years, it is advisable for employers to have alternative ways to resolve internal disputes such as arbitration, mediation, and negotiation.

In arbitration process, the workers and employers will mutually hire a neutral third party (often a retired judge) to help them come up with an agreement. Meanwhile, the mediation process is resolved with the help of a federal employment agency.

Compared to mediation and arbitration processes, a neutral party is not needed in negotiation to resolve a dispute. In this procedure, the workers and employers should come up with a mutual agreement themselves.

Create a grievance process

This will give workers the chance to report sexual abuse, harassment, and discrimination to the company, without resorting to a lawsuit. According to law, employers may not be held liable if they provide a grievance process to their workers.


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