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Employees Suing You? How to Protect Your Business and Yourself

When you own a business, you can expect to deal with some legal issues from time to time. Most of the time, customers file the claims. Unfortunately, there are times when employee disputes arise. When those issues arise, it's important that you take precautions as soon as you can. Employee lawsuits can destroy your company, especially when class action lawsuits are involved. If your employees have filed a class-action lawsuit against you, read the information provided below. Here are four steps you need to take to protect your rights. 

Hire an Employer Defense Attorney

When you're facing a class-action lawsuit, one of the first things you need to do is seek legal advice. However, you don't want to consult with a general practice attorney. Instead, you want to hire an employer defense attorney. Class action lawsuits can be difficult to defend against, especially if you're trying to handle the case without legal representation. Your employer defense attorney will ensure that you have the representation you need to defend yourself against a class action lawsuit. 

Contact Your Insurance Company

Now that you're dealing with an employee-related class action lawsuit, you need to contact your insurance company. Most business insurance policies provide Employment Practices Liability Insurance. This type of coverage is designed to protect business owners against lawsuits. If you have this coverage, you need to file a claim as soon as you can. If the class action lawsuit is successful, your insurance policy may be able to cover the costs of the settlement. 

Preserve Relevant Documents

If you've been notified that you're facing a class-action suit, and it involves your employees, it's important that you start preserving relevant documents. This includes employment records, payroll records, and disciplinary records. Preserving your documents will ensure that you have everything you need to dispute any claims that your employees bring against you. If you're not sure what other documents you need to preserve, or you have trouble gathering your documentation, talk to your attorney. They can help you through the process. 

Avoid Conflicts of Interest

Now that you're putting your defense together for your class action suit, you need to consider any possible conflicts of interest, especially where legal representation is concerned. This is especially important if other co-owners, managers, or business officers are named in the class-action lawsuit. If they are, you may need to seek separate legal representation for each named defendant.