You have started your own business, and you have finally set ground. We would like to offer you some support to add on your efforts. As much as talking about risks may kill your motivation, this post will give you a heads-up on what legal issues you will need to watch out for.
Unfortunately in today’s business world, it’s usually only a matter of time before your company is served with a lawsuit or is being investigated by a government agency. Nonetheless, you can learn the lesson by understanding and getting to identify the most common legal risks and problems that, most business often get trapped in, while at the same time protecting your company against them.
Risk #1: Employee Lawsuit
The employment law is a new kind of lottery ticket for Plaintiff Lawyers who have watched the tort reform narrow their playing field. Therefore, for every particular perceived harm that could be real or imagined, there is a creative lawsuit that is waiting to be filed.
These lawsuits will range from age discrimination, sexual harassment, racial discrimination, gender discrimination, disability discrimination, pregnancy discrimination, retaliation just among the few that are fertile for disgruntled employees.
To be able to avoid this almost occasional suit, first, get a qualified and experienced lawyer. With the assistance of the Attorney clear and thorough all your employee rules and policies. This is the first area of your defense against this kind of legal threat. Ensure that you have drafted an employee manual and then document the employee files.
The next and almost obvious method is treating all employees with respect, equality and with consistency. Make sure that you engage a business or employment attorney to review your company policies and rules, to make sure you are on the safe side.
Risk #2: Investigations from Government Agencies
The state and federal law enforcement and government agencies proliferate with each passing day. Depending on the type of industry that you are in, you could be regulated by as many as ten different agencies, apart from the normal and customary policing departments.
A new trend is emerging that targets more and more businesses, owners and executives for investigation and prosecution. This trend is so prevalent that companies are focusing a lot of energy towards insulating their owners, employees and overall operations from risk.
Therefore to avoid all the hassle that comes with being investigated. With the help of a qualified attorney or business lawyer, adopt policies that will cooperate with government inquiries and investigations. This is the best way to insulate you and your employees from waiving your rights and creating more risk.
Risk #3: Business Contract Lawsuits
Lawyer fees and expenses can instantly wreck you bottom line and distract your business from its core operations. Therefore, your goals should be to utilize the contractual provisions so that you can minimize the chance of getting sued or having to sue a third party that you are currently conducting business with.
With the help of a qualified business attorney, you could set up appropriate contractual clauses that will help you avoid getting dragged into a courtroom by requiring arbitration.
Choose the state in which you can be sued or rather which the arbitration will be conducted, limit the damages that can arise, and require that the loser pays the costs of the resolution of the dispute. Moreover, many more advantages can be built into the contracts to ensure that they give you control over the legal process, minimizing the risks that might arise in the future.
Executives, business owners all have an obligation and role that they play to their companies, employees, shareholders, partners and families to protect and insulate their businesses and operations from legal risks.
This can be achieved by taking proactive steps to ensure that they have prevented lawsuits and legal disasters. Therefore, take control of your legal destiny and win the advantage in any future legal wrangles.
Mollaei Law is a law firm specializing in business law serving businesses and entrepreneurs. We provide legal expertise in all stages of business development by drafting and reviewing contracts and agreements, assisting transactions and negotiating, forming LLC’s and Corporations, registering trademarks and copyrights, business planning, and answering any legal questions you may have about your business.
Sam Mollaei, Esq., business lawyer, can be reached by email [email protected] or via phone (818) 925-0002.