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Six Tips for Avoiding a Hiring Lawsuit

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Small businesses are hiring again. They are also worried about the legal issues surrounding hiring and managing employees. In fact, according to a recent survey by Rocket Lawyer, employment issues are one of the top three legal concerns affecting small businesses. 


Rocket Lawyer offers six employment tips for small businesses that want to stay on the right side of the law when it comes to employment practices. 


  1. Make sure you get an Employment Agreement in writing (Rocket Lawyer's survey found that lack of written contracts ranked high on the list of small businesses mistakes). 
  2. Develop an Employee Handbook.
  3. Create policies that clearly define and prohibit discrimination in the work place, for example, establish a no tolerance policy for racist, sexist and classist actions and/or language.
  4. Implement a sexual Harassment Policy that prohibits any unwelcome conduct or advance that is intimidating, hostile or offensive.
  5. Familiarize yourself with the legal requirements of the Employee Medical Leave Act.
  6. Provide a worker's compensation program—this can help a small business avoid costly lawsuits and out of pocket expenses via small business insurance policies that protects small businesses and keep the worker from suing the employer in the event of an accident.