Workplace Lawsuits: Cause & Prevention

Workplace Lawsuits - Complete Controller

Workplace lawsuits can potentially shut down even the most successful of businesses. Handling legal suits is very stressful and causes a lot of damage and financial loss for a company. Companies must stay up-to-date with the state’s employment laws to better protect themselves from legal trouble. 

Common Workplace LawsuitsComplete Controller. America’s Bookkeeping Experts

Harassment in the Workplace

Harassment is a major cause of toxicity within the workplace. Failing to handle it initially can result in a significant lawsuit. Workplace harassment is of various types; it can either be offensive behavior or hostile speech and action. Some of the most common types include physical, personal, discriminatory, psychological, sexual, third-party harassment, or cyberbullying. These are all types of harassment that have the potential to turn into shameful lawsuits. 

Wrongfully Terminating an Employee

Wrongful termination is a term that is commonly used to blanket the actions that paved the way for it. In some cases, the employer fires an employee and violates the contract’s provisions. It is illegal and provides a solid ground for a lawsuit.

If there was no employment contract, an employee is expected to prove that termination was illegal. The employee may present public policy violation, fraud, breach of good faith, or whistle-blowing as the grounds for building the lawsuit against the employer.

Discrimination between Employees

Another very common workplace lawsuit in the United States is discrimination against employees. There are specific protected classes on which an employee can file a lawsuit. The federally protected classes include race, gender, religion, pregnancy, genetic information, citizenship, age, national origin, familial status, disability, color, and veteran status.

The protected classes of state law vary with every state. Suppose there is no material evidence of discrimination. In that case, an employee must prove it occurred by proving their excellent performance and that the termination or demotion resulted from discrimination.CorpNet. Start A New Business Now

Improper Overtime Tracking

Federal law is outlined in the Fair Labor Standards Act that covers overtime pay requirements of hourly employees. A lawsuit can be presented if an employee is not paid the correct overtime amount. Improper tracking of overtime hours is a significant reason for an overtime lawsuit against a company.


Personal injury lawsuits are by far the most commonly occurring lawsuits. Facing a personal injury lawsuit is one of the biggest fears for any company. Injuries can happen at any time, and they can be somewhat unpreventable. Even if the injury is partially the employee’s fault, a company is still liable to pay for it. Any injury incurred by an employee when working within the scope of the job can result in a personal injury lawsuit. 

These are the lawsuits that companies frequently face. Keeping a record of all the little things happening around the workplace is essential. Staying alert helps employers prevent legal suits against them, which damages the company’s reputation and can even lead to a complete shutdown.

Avoiding Workplace Lawsuits

Staying extra cautious is essential for employers. It helps to identify the problems that their employees face, which could result in a future lawsuit. The following are some ways of countering and preventing commonly occurring workplace lawsuits.Download A Free Financial Toolkit

Distribution of Employee Handbook

An employee handbook is a perfect way to maintain discipline within an organization. Not only should a company distribute a handbook, but they should also review it with their employees regularly. A handbook helps companies keep their troubled employees in check and outlines a plan for disciplinary actions. Maintaining decorum within a company, issues such as harassment or other violent activities tend to decrease.

Accurate Records of Employees

Besides avoiding lawsuits, maintaining strict records helps companies in numerous ways. Keeping track of the total working hours of employees, their performance and all other data allows companies to avoid lawsuits. If a company faces a lawsuit based on overtime or wrongful termination, the gathered data can be used to prove specific points highlighted by an employer.

Purchasing Workers’ Compensation Insurance

The best solution for countering personal injury lawsuits is to provide workers’ compensation insurance. This insurance helps a company benefit injured employees and even assists if an employee dies.

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