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As a business owner, there is much you need to deal with on a daily basis. From managing the needs of your employees to supporting the best interests of your customers, your to-do list will be never-ending. The last thing you need on your hands then is a lawsuit. This is one business hurdle you don't want to face as both your reputation and financial position will be put at risk.
To avoid such a possibility, it's important to understand why somebody might decide to sue your business. We will take a look at some common reasons why in this article. Have a read and then do all you can to sidestep the possibility of a lawsuit.
#1: Copyright/patent infringement
As a business owner, you don't want to copy, steal, or claim the invention of another business's intellectual property. This could be something you purposefully do although, without sufficient research, you could also do it accidentally. Think about this when coming up with a name for your business and product and think about this when you're planning on bringing a certain product to market. If another business thinks you are stealing ideas from them, you could be made subject to a copyright or patent infringement suit. Consider the legal action taken out against Moon Pod for a real-world example.
#2: Wage disputes
Are you paying your employees what you promised? Are you paying them to work overtime? Are you paying them the minimum wage (or over)? If your employees are being underpaid, for any reason, you could be made subject to a lawsuit when they try to recover what is owed to them. You need to adhere to all employment and labor laws in your state, so never be tempted to cut costs by not giving your employees the money that they are legally entitled to.
#3: Workplace injuries
Health and safety need to be your focus within your workplace as you can be made subject to an injury claim if an employee or a customer is hurt on your premises. You could be forced to pay legal and medical fees if somebody takes action against you and that could derail your business finances. Of course, not every accident will be your fault so with the aid of an attorney you might be able to avoid the legal ramifications of a claim. But where you haven't kept up with the upkeep of your premises and when you haven't provided employees with the necessary safety gear for their roles, you could be held liable for any injuries that take place.
#4: Discrimination
If any of your employees feel discriminated against, you could be made the subject of a discrimination claim. Follow the guidance given by the U.S. Equal Employment Opportunity Commission to avoid such a lawsuit being made against you. Your employees deserve to be given equal opportunities within the workplace, and the same applies to those people who are applying for jobs within your organization. Be a fair employer to avoid any legal charges.
For more advice, commit to research online and/or speak to a business attorney. The better educated you are on legal matters the safer your business will be. So, take all necessary precautions to safeguard yourself from a lawsuit.