Protect your business from getting sued

Protect your business from getting sued

On Behalf of | Sep 30, 2019 | Business Law |

For business owners in Louisiana, a lawsuit can be costly, both financially and timewise. To avoid this stress, there are proactive things owners can do to help prevent someone from suing them.

According to Inc, employees are often the ones who bring forth a lawsuit. One reason is for discrimination. Business owners must understand the federal and state laws in regard to hiring, firing and giving promotions. One must not discriminate against someone based on:

  • Gender or sexual orientation
  • Age
  • Race or national origin
  • Religion
  • Disability
  • Pregnancy status 

Although discrimination can be hard to prove, it is best to follow the law. Pay is also a reason employees sue. Unless the employee is exempt, a worker must receive overtime pay anytime he or she works more than 40 hours a week, and some states require extra pay for working more than ten hours in a day. Employers may not deduct pay from exempt employees’ paychecks. It is also illegal to make, or allow, an employee to work off the clock.

Investopedia recommends additional tips to protect one’s business. The owner, as well as the employees, should represent the company properly in all actions and advertisements. This means not saying anything questionable or promising something specific. It is also smart to avoid conducting business with questionable or shady clients. 

One preventative step to protect the owner’s personal assets is to incorporate or make a trust the owner of the business. Having the proper insurance coverage, such as liability, also helps protect the company in the event of a lawsuit.