As a small business owner, you will have a lot of issues to deal with to keep things on track. The last thing you would want to happen is to be on the wrong side of the law. However, it is often challenging to predict and avoid lawsuits. While you may be the most careful business owner, there are chances that you can go wrong and get into hassles. At times, your employees may be at fault but you will have to bear the brunt of their mistake. Or sometimes, you can expect an angry vendor, an unhappy customer or a disgruntled employee to sue you even without a legitimate reason. But being aware can help you avoid such legal actions and even if you face them, you can deal with them better. Here are the types of lawsuits that small business owners may face.
As the name suggests, these are the actions that stem from a violation in the business’ approach to employment. The cases may range from wage and hour claims, unpaid overtime claims, discrimination lawsuits, and sexual harassment suits within your workplace. Employee disputes have legal and financial implications and impact your reputation as an employee as well, which is the reason why you should go the extra mile to protect your business. The laws related to employment practices vary from state to state, so it makes sense to be aware of the ones in your jurisdiction if you want to avoid such cases in the first place.
Intellectual property disputes
Another common reason why businesses can get sued is the breach of intellectual property such as trademarks, copyrights, and patented products. If you use any of these without the owner’s permission, you can expect litigation along with the accusation of theft of intellectual property. Something as simple as using a logo from the internet can land you in deep trouble, even if you didn’t do it with wrong intentions.
Personal injury lawsuits
Businesses of all types are susceptible to personal injury lawsuits, which can be of different types. So it becomes important to be well aware and ensure that you have the right measures in place. Experts at Buckingham Barrera Law Firm say that slip and fall cases are the most common personal injury claims that businesses come across. Further, you can expect workers’ compensation claims for the obvious reasons of injuries to employees at work. Automobile accidents with company vehicles and defective product injuries are some other situations that may bring litigation for organizations.
You also need to be extra careful with contracts and agreements with vendors and customers because they can also lead to disputes and lawsuits. While all the contracts should be in writing, they should have clear language that explains all the specifications related to scope of work, costing, timelines, and warranties. Clear, complete paperwork can save you from disputes.
Apart from these issues, your business may also get implicated for intentional fraud. Even a dishonest act by an employee can bring a problem. So you need to keep a constant track on your employees and ensure honest practices within the organization.