5 Top Reasons Employers Get Sued

A lawsuit from a former employee can be a stressful situation for your company. Not only do you have the headache of working through the legal system, but you also need to pay a lawyer to help with the situation. As an employer, it is important that you understand common reasons why employees sue, helping you avoid these issues.

These are the five main reasons why employers are sued:

  1. Wrongful Termination: If it is necessary to terminate an employee, then you need to make sure that you have the proper documentation in place. This information can be used to fight against potential threats of wrongful termination. Include as many details as possible in the documentation to back up the decision for terminating the employee.
  2. Worker’s Compensation: There are situations where employees retaliate at the time of termination. Sometimes, this retaliation happens in the form of bogus worker’s compensation claims. Minimize these issues by having a good procedure and strategy in place to handle workplace safety and potential worker’s compensation claims.
  3. Meal and Break Violations: Employers carry the responsibility to make sure that all employees take their meals and breaks on time. Also, you need to make sure that employees are clocking in and out on their timecards to track the hours that are worked.
  4. Overtime Pay: Overtime pay is based on a daily and weekly schedule. If a person works over eight hours a day, then that classifies the employee to receive overtime pay for the additional hours. Overtime compensation is also needed if an employee works more than 40 hours in a week.
  5. Minimum Wage: Minimum wage requirements vary among cities and counties, so you need to understand the laws for your location. If you have business locations in two different cities, then there might be difference wages that need to be met depending on the locations of the offices.

Do you have questions about employee management or other HR topics? Talk to the Human Resources experts here at Cahue Enterprises. We understand the challenges of managing a team of employees, and our staff would love to help you avoid these potential risks. Call today to learn more about our streamlined Human Resources business solutions: (951) 760-2870

Disclaimer: Any information provided is for informational purposes only, and should not be construed as legal advice regarding any subject matter. Cahue Enterprises HR Consulting, Inc. is not assuming the position of legal advisor but instead aims to educate on human resources matters and compliance.