Protecting Your Company From Law Suits

Employment harassment and discrimination lawsuits are on the rise. Such suits are expected to increase even more as employee awareness increases. Los Angeles employment law provides employees with protection against behaviors and actions which constitute sexual harassment and other forms of harassment and discrimination.

Business owners have a responsibility to do everything they can to limit risk within the company. Following these simple suggestions could save business owners a great deal of money.

Business owners and managers should be attentive to their words and actions. Employees often model their words and actions after that which they see from upper management. Set a high standard and expect everyone to follow it. Do not say or do anything that could be misinterpreted as harassment, sexual harassment, or discrimination.

Partner with an experienced employment law attorney in Los Angeles. Business owners should hire an attorney that is familiar with the laws in Los Angeles. Specifically, the attorney should understand how to handle cases involving sexual harassment and other forms of harassment and discrimination. Do not wait until you are being sued to hire an attorney. Having a qualified person on board can help business owners to avoid lawsuits before they happen.

Consider incorporating. As a separate legal entity, a corporation is responsible for its own debts. That means creditors of a corporation generally can seek payment only from the assets of the corporation—and not from the personal assets of shareholders, directors and officers. Essentially, that means business owners can conduct business without risking their homes, cars, savings, or other personal property. Owners of a sole proprietorship or partnership, on the other hand, face unlimited liability for both business and personal assets.

Obtain liability insurance. Every business owner is susceptible to legal action. A liability insurance policy provides insurance coverage for lawsuits arising from injuries and property damage but may not automatically contain coverage for harassment and discrimination lawsuits. Business owners should be sure to include this coverage in their policy.

Business owners have the responsibility to protect their companies and their personal assets in the event of a lawsuit. Implementation of these few suggestions will lessen the likelihood that a business will suffer damage from employee lawsuits.