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ARI Blog: Article

Protecting Yourself from Employee Litigation Pt. 2

This is the second part to our series on employee-related lawsuits for restoration contractors.

Tactic 7: Don't Delay Proactive HR Measures

Performing a self-assessment on your company’s policies and procedures, employee handbooks, and compliance with labor law changes is crucial because it will allow you to find and correct any mistakes before an outside agency like the Department of Labor is brought for an audit.

Tactic 8: Listen to Your HR Manager/Director

Employers should always remember the value that HR professionals add to an organization. After all, today's employment landscape is a legal minefield, and you need a trusted resource to help you navigate that dangerous terrain.

Tactic 9: Give Your HR Manager/Director Access to Legal Counsel

Allowing access to legal counsel will help your HR Manager avoid potential mistakes, ensure the proper legal approach is taken, gain the confidence they need to make decisions, and save your company from costly litigation.

Tactic 10: Strike an Appropriate Balance between Best Practices and Practical Reality

Best practices are important and should be established and followed. That said, employers often cannot ignore the practical realities of the workplace. You should, of course, avoid intentionally violating the law or sacrificing legal obligations in the name of business.

Tactic 11: Purchase Employment Practices Liability Insurance

Even if you complied with all of the recommendations above, this does not mean that you won’t have a claim at some point in the future. Purchasing an insurance policy specifically designed to protect you from most instances related to employee litigation will further protect you. Policies are not only designed to pay settlement fees, but they will also provide an attorney and cover the defense costs involved in trying to exonerate you from potential wrongdoing.

If you are interested in finding out more about how Employment Practices Liability Insurance can protect your company, please give us a call.

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