Common lawsuits and how to avoid them

| May 27, 2021 | Business And Commercial Law

Utah small businesses do the best that they can to stay out of the courtroom. While some court cases are inevitable, others happen because the business has been lax in its compliance practices. Some cut corners and end up paying a price. Here are some ways that your business can avoid litigation.

Employee pay cases cause issues

One of the major types of lawsuits that businesses face is wage and hour cases. This is when companies do not pay the proper overtime to their employees as required by law. Companies need to keep proper records to prove that they have legally paid their employees. Between back pay and the costs of litigation, companies end up paying a price for not giving employees overtime and holiday pay.

Discrimination and harassment cases

In general, companies get tripped up by employment issues. Another major area of lawsuits is harassment and discrimination cases. Businesses need detailed policies and procedures and must carefully monitor employees’ behavior on the job. Their human resources department must act at the first sign of trouble to ward off further problems.

Fraud and sales practices

Companies can also face lawsuits for the business and sales practices of its employees. They are legally responsible for the acts of employees as agents of the business. If an employee engages in fraud on the job, it can be imputed to the company. This is where strong compliance practices and monitoring may help a company stay out of trouble. Consulting with a lawyer when there is not a known problem could keep there from being an issue in the future.

A business law attorney could perform a risk assessment and review your corporate practices to tell you where you could have an issue in the future. Legal help is a sound investment that may preserve your business reputation and bottom line going forward.