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Protect Your Business Against Employment Disputes

Your small business is humming along nicely. It is doing so well that you have hired some employees. You even see yourself hiring more employees in the future. Whether your business is a startup or established, you can find yourself faced with employment disputes that negatively impact your business assets and its bottom line. While some disputes can be handled amicably in-house, the rest may end up in court with you on the wrong end of an expensive EEOC settlement. Settlements last year totaled a whopping half-a-billion dollars.

Common Employee Lawsuits

  • Wrongful Termination
  • Age, Sex, Religious Discrimination
  • Sexual Harassment
  • Retaliation
  • Whistleblowing

Basic Steps to Protect Your Business

Better Safe than Sorry

Preemptively considering the possibility of an employee dispute is the key to preparing for a dispute to turn into court action. You can minimize the chances of losing a dispute by taking a few basic precautions.

  • Put Agreements in Writing.
  • Keep Accurate Records.
  • Protect Your Reputation.
  • Enact Sound Employment Practices.
  • Be Prepared with an Experienced Lawyer.
  • Separate Personal Finances from Your Business.
  • Be Aware of Your Insurance Coverage Needs.

Asset Protection Strategy

The best legal advice will tell you it’s best to head things off before you find yourself in court at the mercy of a judge who favors employee actions. There are several legal steps or asset protection strategies you can implement to limit or deny the impact of an employee lawsuit.

  • Set up an asset protection trust.
  • Within the trust is an LLC.
  • You as the manager make investments and are the signatory on financial accounts.
  • In the event of a lawsuit, the trustee steps in as LLC manager, a position prohibited from releasing funds.
  • Place home and income property into individual land trusts that keep your name and company names out of public records. Both are protected by the LLC.

Other asset protection strategies may also be available. A good business attorney can suggest strategies that will work for you and your particular business.

Avoiding Problems – What You Can Do

The most problematic management responsibility, in a legal sense, is hiring, firing, and disciplining in proper and effective ways. The clearer your policies are, the better chance you have of heading off an employee dispute that may evolve into a lawsuit. You can’t always avoid a lawsuit, but you can minimize your vulnerability by taking certain steps.

  • Have job expectations, duties, and performance criteria in writing.
  • Encourage employee-management communication.
  • Communicate clearly how employment infractions are enforced.
  • Establish a specific discipline process.
  • Last but not least: document everything!

Let EJP Law, P.C., P.C. help you protect your personal and business assets from potential lawsuits. If you reside in West Hollywood, Beverly Hills, Santa Monica, Westwood, and the surrounding greater Los Angeles area, call us now at (213) 784-3640. We’re here to help you protect yourself and your business.

All information provided on this page is for educational purposes only, and does not constitute legal advice. Each situation is dependent on the specific facts and must be evaluated on a case-by-case basis.