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3 tips for employers to avoid litigation

On Behalf of | Mar 10, 2023 | Business Law

As an employer, you certainly do not want to be involved in litigation stemming from an interaction with an employee. This can be damaging to your company’s reputation. It can be costly and time-consuming. Additionally, you just want to make sure you’re treating your employees the right way so they wouldn’t want to start a lawsuit.

However, it is important to note how easily some of these types of disputes can happen. Here are some tips to help you avoid them.

1. Be aware of protected classes

First of all, you must be aware of the different protected classes so that you don’t discriminate against individuals in those classes. These are set up by the EEOC, and they include things like race, national origin, gender, age, religion and more.

2. Treat all employees the same way

Another simple way to avoid these allegations is to ensure that you treat everyone in the same manner. A good example of this is setting up a dress code. You cannot set up a dress code for certain employees without applying it to others. But if you create a code that applies uniformly to everyone, then it is not discriminatory.

3. Pay all employees properly

Wage and hour claims are common, and they often stem from simple mistakes. For instance, did you know that you cannot include yourself in a tip pool with your waitstaff? Some employers think that they are setting up a legitimate tip pool, which is a legal way to pay tips, but they accidentally include themselves, a manager or a supervisor – which is illegal.

These tips can help you avoid some of the most common errors, but litigation is still possible. If you are facing a dispute with an employee, make sure you know about all of the legal options at your disposal.

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