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Protecting a business from employment practices litigation


The hiring process can sometimes be difficult to facilitate for smaller businesses. However, it is essential that businesses handle the hiring and termination process with care, as not doing so may result in lawsuits, according to the Small Business Review.

"Employment litigation has increased dramatically over the last 10 to 15 years," attorney Robert Gilmore, a partner with the Kohrman Jackson & Krantz labor and employment law group told the source. "No company is immune, no matter what the size," says Gilmore.

In order to avoid claims brought about by current or former employees, the source recommends, keeping a close eye on employees from the beginning. Treating employees well, hiring them at-will, monitoring their performance and providing them with the tools they need to be successful in their position can all lead to more positive experience both for the owner and the employee.

Additionally, consulting an employment attorney may be helpful to ensure no legal boundaries are being crossed, the source suggests.

According to the source, the best way to protect a business is to invest in employment practices liability insurance coverage. The type of coverage can serve as a buffer against the potential for future lawsuits, even if one hasn't occurred or been threatened yet. The insurance can serve to cover payment of settlements, judge-awarded damages to the plaintiff or the cost of legal expenses in an amount up to the policy's limit.  

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