If a small business gets hit with an employee lawsuit, it could quickly drain the business funds. Even a small issue can end in a lawsuit, which is why small businesses need to protect themselves. Here are five precautions to take against employee lawsuits:

1. Be familiar with federal and state laws

Employment law is constantly changing and covers a wide variety of issues. Small business owners need to take the time to see which laws apply to their business, and if these will change if the business grows over time.

1. Consult Attorneys

The attorneys at InnovaCounsel have many years of experience dealing with all facets of employment law. Consulting them on hiring practices, employee handbooks, and more can help reduce the risk of litigation. Have them perform an annual risk assessment to see where the business could be vulnerable.

1. Educate Managers and Supervisors

Management training and education programs will ensure managers and supervisors know the policies the company has put in place. Establishing these programs could help save a small business if they end up in court because of a manager or supervisor.

1. Create a Hiring Process

The hiring process of a small business could expose them to litigation. Talk to an InnovaCounsel attorney about the hiring process to see if any changes need to be made in the way the company finds and hires it’s employees.

1. Maintain Documentation

Having files and documentation on employees’ behavior and performance can protect the company if an employee tries to claim they were fired for a discriminatory reason. These documents should also be kept for years after the employee is no longer with the business.

Small businesses might not be able to survive an employee lawsuit, which is why they need to take the precautions listed above. InnovaCounsel can help small businesses implement these precautions and can assist them should litigation come up.