In our litigious society, every business must remain wary of lawsuits. No company wants to face a time-consuming, expensive, image-damaging lawsuit. While every business’s level of risk varies, litigation remains a constant threat for most companies.
It is wise for business owners and their attorneys to be aware of some of the most common types of lawsuits against businesses. This way, they can take proper precautions to reduce their risk of litigation.
1. Discrimination suits
Employees who fall under the categories of race, religion, gender, nation of origin, age or disability are afforded certain protections by the Equal Employment Opportunities Commission. While some discrimination lawsuits are meritless, others are founded in fact. All employers must take care regarding discrimination lawsuits from workers.
2. Wage and hour violations
Workers who believe that their employer is violating wage and hour laws may file class action or individual lawsuits. Therefore, businesses must carefully comply with state and federal wage laws to avoid litigation and pay employees fairly.
3. Torts
Businesses face torts if someone accuses them of violating civil rights laws. For example, a business could face a negligence tort for failing to put out a sign to caution against wet floors. This is an example of an unintentional tort. Intentional torts like fraud may have higher legal consequences, so it is crucial for businesses to protect their rights.
4. Contract disputes
Contract disputes, particularly breach of contract, compose a large percentage of lawsuits against businesses. If any party disputes a portion of a contract or believes that another signatory has breached the contract, they may bring a complex, tedious lawsuit. Having an attorney carefully look over contracts can help avoid these lawsuits.
While litigation is sometimes inevitable, there are ways to reduce the risk of lawsuits. One is to work with an attorney. Many businesses seek outside counsel to advise them in business law. This helps uphold their best interests in negotiations or in court.