The Problems In Small Business That are Likely To Result In Litigation

When you own a small business, such as a digital marketing agency the last thing you need is for someone to file a litigation case against you. Litigation lawyers will be needed to help you fight the case, but even the best lawyers sometimes fail to get you off. Much depends on the circumstances of the case and whether or not there is substantial proof against you.

There are many problems that can cause litigation: –

  • Poor standards of safety in the workplace. As we know, poor safety standards cause accidents. If employees are hurt on your premises, they can easily sue you. If a customer trips and falls, they can sue you.
  • Poor working conditions. This is slightly different from poor safety, as it could be something like overcrowding, lack of amenities, poor lighting and so on.

  • Not supplying proper and adequate protection for workers who deal with chemical or other hazardous substances. This can result in chemical burns or lung problems that don’t show up for years, as we know from asbestos inhalation.
  • Not training employees in safe practices. For instance, if there is a spill in a supermarket and an employee mops it up then leaves the area unattended to get a warning cone, someone could walk on the wet floor and fall, breaking multiple bones. With proper training, the area would not have been left unattended.
  • Not keeping accurate and signed documentation about how problems were handled. One practice that every business should implement is keeping documentation about everything that happens. It should be very detailed about what was said and done to solve the problem, dated, then signed by all those involved.
  • Allowing discrimination and harassment of any kind to go unchecked. The workplace is often a hotbed of discrimination and harassment. It is up to you as the business owner to instigate policies and procedures to deal with such problems. You need to create an open door policy so that employees are not afraid to offer feedback about the problems that arise and will have confidence that something will be done about them.
  • Any kind of illegal activity including fraud. Naturally enough, if you or your employees indulge in such activities, it will eventually all come out. Keeping excellent and detailed records will help you to avoid such a problem.
  • Not paying the proper wages, overtime or holiday pay. Some larger businesses have been sued for back pay amounting to millions. Make sure this can’t happen to you by paying the right award wages at all times.
  • Discarding hazardous waste incorrectly. While not litigation in a civil sense, this can cost you a great deal as a criminal lawsuit.

Ensuring your business is fair, honest and compliant in all areas will reduce the likelihood of litigation being brought against you.