As a business, dangers and liabilities are everywhere in your workplace. These include employee discrimination issues, sexual harassment claims, disgruntled employees, breaches of contracts and many more. You need to take a step to limit liability and shield your business from the effects of lawsuits brought against you by such employees. So, what can you do to this effect?
Have a clear written policy in your company’s employee handbook. Do not leave out any vital information including the pay rate, job status, performance appraisals and job change. Incorporate any changes that you make to the handbook when they happen.
Incorporating your business creates a legal separation between you and the entity. This means your personal assets will not be attached when you face a lawsuit and creditors come calling. Doing business as a sole proprietor puts you at risk of facing lawsuits from employees with the danger of losing your personal property as well. Your home, savings, and cars stand to be attached.
You need to understand the rules governing your engagement with your employees at all times. One of the laws regards employee documents. Know the documents required by employees and how long you should retain them. Vital documents include employee health records, benefits data and affirmative action documents.
You need to have all the required documents and maintain them in a file throughout the employee lifecycle. Visit the Department of Labour in the state and at the national level to understand the types of documents you need to retain and for how long you should retain them.
To ensure the privacy and security of information, make sure you house employee personnel files in a locked file cabinet with access restriction. One of the complications that arise during lawsuits is misplaced or lost files. Make sure you have the files intact, even those for employees whose contracts have expired. Make sure your human resource manager tracks the release of information in a separate log fixed into the file of the employee requesting the information.
A business attorney understands what you need to protect your business against liability. The attorney will advise you on areas that you need to safeguard and how to do it. If you or your business are facing a lawsuit, contact Gehres Law Group in San Diego today.