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Steps to help prevent litigation

On Behalf of | Oct 16, 2019 | Firm News

Business owners in Michigan have a lot on their plate, and dealing with a lawsuit is not something companies have the time, energy or money for. While it may not always be avoidable, there are steps businesses can take to help reduce the risk of clients, vendors or employees suing. 

According to Nevada Business Magazine, documentation is important. The majority of litigation cases are due to conflicts with a client or vendor. Written documentation in the form of a contract, letter or memo can clear disputes up quickly. 

Some of the best businesses owners are those who have a team that advises them about financial and legal matters. This may also include hiring someone to perform an audit to catch any potential risks for litigation. It is also a good idea to do a little research on potential clients before taking them on because bad ones are bad for business. 

According to Inc, former and current employees also commonly bring forth lawsuits. An easy way to prevent employee litigation is to follow state and federal laws in regard to discrimination and wages. Make sure you are not making employment decisions based on age, gender, race, disability or religion. If you hire someone with disabilities, make the appropriate accommodations so they can perform their job properly. 

Employers need to understand how pay works in regard to salaried vs hourly employees. If paid hourly, employers must pay for overtime, and it is never ok for employees to work off the clock. Employers should also pay employees’ salaries based on the market demands as opposed to other factors.