Is it safe to have employees anymore?

You are the owner of your business, and in many cases, you have unchallenged authority to make the hard decisions, and guide your company through difficult circumstances. When it comes to employee relations, you also may have the responsibility for direct hiring and firing decisions. Unfortunately, in today's lawsuit-crazed business environment, business owners must actually prepare for an employee's departure, even before that employee has been hired. The reality is that for the multitude of reasons that an employee might leave their job, there is an equal multitude of reasons for lawsuits against their employers.

None of us can always answer the questions as to when, how, or why employees leave their jobs, but we can deal directly with some of the out-of-pocket expenses that your business may confront when a relationship with an employee may degenerate into a lawsuit. Unfortunately, the elements of Stress, Discrimination, Harassment, or even Wrongful Termination have become watchwords for even the most savvy business owner. Employees have quickly learned that if they proceed through legally accepted channels, they can present claims against their employers. And whether the employee wins or loses one of these claims, the employer always loses time and money.

Unfortunately these problems are on the rise and dealing with these situations is becoming more common for the small business owner. In a time when the status of our economy fluctuates on a daily basis, people seem to look for the easy way out. As an employer it is your duty to take precautions and plan ahead for the worst disaster. The development of steady record keeping is a great start. A quick call to your local chamber of commerce can assist you in the proper steps to take when hiring or firing employees. Now more than ever, the interview process needs to follow guidelines that do not discriminate and the implementation of an employee handbook is mandatory. We must also consider that all employees need to be treated equally and a situation can easily arise when another employee perceives himself less than equal to his fellow peers.

Times have changed. Media coverage of sexual harassment cases and upper level executives stealing from their companies has invoked a sense of, "If they can pocket some extra money without the work so can I." Unfortunately, it has become so easy for people to prosper that event he slightest remark or look can lead to a situation that leaves you saying to yourself, "How did I go wrong"? It's not that the employer necessarily did anything wrong, it is more that the employee knows that they can push the envelope far enough for them to get you in a situation that has no winners, only losers. This is based upon the fact that our courts are diluted with fraudulent cases and employers are faced with the expenses related to defending themselves.

There are many solutions to the lawsuit dilemma, and having affordable insurance protection is only the start. Policies insuring you for "Directors & Officers Liability," "Employment Practices Liability," and to an extent "Workers' Compensation," are often backed by Consulting & Advisory services provided by your insurance carrier. Many employers have these polices, but do not even realize that good advice may be available for the asking. Should all tactics fail, your insurance policy will provide you with a legal defense, and in most cases pay judgment.

This article was provided by the C.M. Meiers Company, a resource for employers in the San Fernando Valley. With trained specialists that understand the legal quandaries that arise in employment related issues, CM. Meiers Company has helped to have cases dropped, and in many situations, settlements negotiated. As an advocate for employers" rights, the Company have lobbied to congress and the senate to deal with the problems that employers are facing in this arena. For more information contact Jeff Kleid at [phone].