As an employer in California, you must be aware of potential class action lawsuits and the strategies to defend your company’s interests.
Legal actions can be financially and reputationally damaging, making it important to protect your business.
Safeguarding your company
At 12%, California has the highest percentage of legal charges filed with the Equal Employment Opportunity Commission. Proactive measures can help your business avoid lawsuits.
Start by clearly documenting your company’s employment policies and procedures. Then, effectively communicate these rules to your employees. Having a solid foundation for your employment practices can reduce the likelihood of legal issues arising.
Regularly train your staff on workplace rules, regulations and discrimination policies. Well-informed employees are less likely to engage in behavior that could lead to a class action lawsuit. Maintain detailed records of employee hours, wages and other relevant information. Documentation is a valuable resource if disputes arise. Establish a document retention policy outlining how long to keep various records.
Addressing employee concerns
Consider implementing arbitration agreements as part of your employment contracts. These require resolving disputes through arbitration rather than court, which is less costly and time-consuming. Review your liability insurance policies to ensure they cover potential class action lawsuits.
When an employee raises a concern, address it promptly and appropriately. An open and responsive approach can prevent issues from escalating. If a class action lawsuit does emerge, act swiftly. Timely and strategic responses can mitigate the impact.
Foster a work environment that values fairness, equity and compliance with the law. However, if issues do arise, it is important to understand your defense options.