Employer and employee relationships are one of the most important pieces of running a business, which means that employee lawsuits can easily derail a growing business. State and federal law enforce certain regulations for the protection of employees, and contractual agreements also form the basis of the employer-employee relationship. Legal compliance issues and contract breaches can lead ot dissatisfied employees, who may file a lawsuit to seek recompense for their damages. Understanding how to prepare for and prevent employee lawsuits is essential to small, growing, and large businesses.
The primary strategy for protecting your business from employee lawsuits is being proactive. Many employee lawsuits can be prevented with effective internal documents and contracts, as well as awareness of potential sources of discontent. Managing employees well and listening to their requests and concerns can help alleviate stress and address issues before they lead to a lawsuit. However, to effectively mitigate the potential of a lawsuit, business owners must first understand common points of contention and how to address them
A seasoned Florida business attorney from Clearwater Business Law can help evaluate contracts and statutory compliance in a personalized consultation. Call the office today at (727) 502-6874 for details.
Common Causes of Employee Lawsuits
Employee lawsuits may occur when employees are unsatisfied with working conditions, suffer from unlawful business practices, or have contracts breached. However, this broad terminology means that there are a myriad of employee lawsuits, each with unique legal procedures and expectations. Employers would benefit from both a solid working knowledge of common employee lawsuits as well as the advice and support of an experienced business lawyer. Awareness of these issues can help business owners proactively implement policy and compliance measures to avoid them.
Wage and Hour Violations
A common cause of employee lawsuits involves Florida wage and hour laws. Florida law, along with federal law, protects employees in the form of minimum wage laws, required rest breaks, and overtime pay. Employers must understand the relevant Florida statutes to ensure that their employment practices don’t conflict with local law. Paying employees the proper amount within the expected timeframe, as well as providing the required rest breaks, can help avoid wage and hour violations and lawsuits. Employers may also be expected to adhere to other federal and state regulations, such as the Occupational Safety and Health Administration guidelines for a safe workplace.
Wrongful Termination
Employee contracts often involve termination clauses that provide grounds on which an employer could fire the individual. However, there are several cases in which termination could be unlawful, according to the U.S. General Services Administration. Terminating an employee for discrimination, whistle-blowing, or refusing unsafe actions could lead to a wrongful termination lawsuit. Since Florida is an at-will employment state, employers may be justified in firing an employee if they are not in violation of state or federal statutes. However, many employee contracts provide special instructions for when and how an employee is allowed to be terminated. Breach of this contract could lead to legal action.
For more details regarding employee lawsuits, speak with a skilled Florida business attorney from Clearwater Business Law.
Discrimination and Harassment
Discrimination is also prohibited by both state and federal law. Discrimination can appear in hiring, termination, and regular treatment of employees. Employers must understand protected classes to prevent and create policies that enforce discrimination laws in the workplace. Protected classes include gender, race, ethnicity, age, orientation, and many more. Additionally, workplaces are expected to remain harassment free. Sexual harassment in the workplace is a pervasive issue, one that may be severely punished in an employee lawsuit.
Employee Misclassification
There are also many different types of employees. Some companies utilize full-time employees, such as those with W-2 tax forms, while others benefit from the flexibility of independent contractors. However, as employees are entitled to certain benefits that contractors are not, it is important to classify employees correctly. Misclassification of employees means that those workers who would legally be considered employees do not receive the benefits to which they are entitled. These mistakes could easily lead to employee lawsuits and other legal actions.
Breach of Contract
Many employees are under contract with their employers, whether this be employment contracts or other agreements. This is necessary to help with setting standards for the workplace and expectations for the employee, but most contracts also include benefits and more for employees. If an employer fails to honor their side of the contract, these contract breaches and disputes could quickly spiral into an employee lawsuit. Carefully crafting contracts beforehand with the advice and expertise of a business lawyer can help prevent conflicts and breaches.
How To Prevent Employee Lawsuits
While knowing may be half the battle, there are still many steps employers can take beyond mental preparedness to prevent employee lawsuits. Taking informed action as a business owner can not only protect against employee lawsuits but also improve the working environment and boost morale among employees. Serving employees well and addressing their concerns quickly is more than just a wise business strategy. Doing so helps foster a positive company culture and show employees that they are valued, which can ultimately help the business thrive.
Proactive Policies
As a business owner, writing policies and training employees goes a long way. Creating internal policies and setting expectations for employees can help clarify and avoid miscommunications before they start. This may include providing adequate training, drafting employment contracts, and navigating business and employment agreements. A skilled business lawyer can help draft and revise contracts, helping ensure that the agreements presented are effective with reduced risk of breaches.
Addressing Employee Concerns
Additionally, business owners would do well to quickly address employee concerns. Failure to act quickly when there are allegations of harassment or poor working conditions could lead to a major issue later on. In many cases, employee lawsuits can be avoided by simply responding quickly and effectively to address the source of the frustration. A business attorney can help develop strategies to collect and address employee concerns in accordance with Florida law.
Speak with a Florida Business Law Attorney
Protecting a business from employee lawsuits is a practical and effective way to not only improve employee relationships but also strengthen a business to grow. Taking proactive measures to address employee concerns can protect against future legal action, while also streamlining the business to be more efficient and more effective. An experienced business attorney from Clearwater Business Law can help business owners strengthen their policies and discuss legal options in an initial consultation. Schedule a meeting with a lawyer today by calling the office at (727) 502-6874.