Five Ways To Protect Your Business For Being Sued By Your Employees

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Five Ways To Protect Your Business For Being Sued By Your Employees

28 August 2015
 Categories: Law, Articles


As a business owner, you strive to make sure that your customers are well protected from both property and product injuries. However, as an employer, you are also responsible for the safety of your employees. In many cases, employees are entitled to worker's compensation if they are injured at work, but other personal injury lawsuits can also be filed in some cases. It's your job to create a work environment that is legally safe and low-risk for your employees. Here are some things you can do to protect your business from both worker's compensation claims and personal injury lawsuits. 

Enforce a Code of Conduct

It may seem strange to have to impose a code of conduct among employees who are mature, but the workplace can bring out the worst in people during times of boredom or during employee disagreements. Your code of conduct should be enforced and known by all employees, and it should be reviewed regularly for staff meetings. Things to put in the code of conduct include 

  • limits on physical contact between employees. This may seem silly, but it will help to reduce the chance of sexual harassment in the workplace, and it would keep things professional between employees who are good friends or employees who are dating.
  • restrictions on the number of people who can be on break at one time.
  • safety precautions for people running machinery. For example, if you have people who drive trucks or operate forklifts, you should never allow people to congregate around machines, and you may want to make sure that those who operate have a spotter when backing up. These types of precautions significantly reduce the chance of physical injury.

​Strict rules in the workplace are there for your protection. Make sure that new hires are aware of behavioral expectations, and be sure that they are consistently enforced. This way, if an employee does sue for injury or harassment, you can state that you have the same expectations across the board and you will have proof that every employee was aware of them. 

Respect Employee Privacy

It is important to make sure that you and all of your employees show respect for each employees personal life and identity. Privacy, while not a specific constitutional right, is an implied right for Americans that courts uphold. You should not allow any of your employees to use personal social media accounts while at work, and you should strive to remain professional by not intruding on their home life. Also, never display personal conversations or photographs without the permission of your employees.

Encourage Honesty

Even though you are in a position of authority over your employees, you can still be liable for a lawsuit if a jury decides that you intentionally decided to commit harm to the person who is suing you. One of the best ways to make sure this doesn't happen is to encourage transparency within the company. While you don't have to disclose everything to employees, you should be sure that you

  • avoid fraud charges by honestly paying out employees for the work they do. You can also avoid fraud charges by clearly defining job descriptions and by sticking to them. When making new hires, be consistent and open about starting pay and the benefits employees receive.
  • speak candidly to employees when there is a problem. If you take issues to higher up authorities or discuss matters with others when they are not present, you could be sued for defamation.

Many laws protect employers from being sued by disgruntled employees, but you could still find yourself fighting a lawsuit if you are negligent in your responsibilities. Taking these precautions can help you to make sure your business stays out of court. And if anything happens, don't be afraid to reach out to a personal injury lawyer.