Steps To Take If Your Business Gets Sued by an Employee in Arizona

How To Protect Your Business Against Litigation

Business owners know how challenging it is to operate a successful business in the current economic situation. No one wants to add the expense and stress of a lawsuit, especially when it is a legal claim from an employee. If your business is facing a complaint or lawsuit from an employee, it’s crucial that you know what steps to take in order to protect the interests of your business. Consider these steps from an Arizona business attorney that you should take in this situation in order to protect your business against litigation from an employee.

Understand the Claim

First, it’s imperative that you take time to fully understand the nature and scope of the employee’s claim against your business. Verify whether your employee filed a lawsuit or simply initiated a claim with state and/or federal regulatory agencies. In employment law, it’s common for claims to go through a regulatory agency before a lawsuit can actually be filed against a business. Instead of a lawsuit, you may actually be facing a claim with the Arizona Labor Commissioner’s Office, United States Department of Labor (DOL), or the Equal Employment Opportunity Commission (EEOC), or another government body. Regardless of the nature and scope of the claim being made against your business, an Avondale business lawyer can help you navigate the situation to protect your interests.

Don’t Take the Situation Personally

As difficult as this may be, remember that employment law claims are seldom personal–or at least will not be resolved based on personal feelings. Make every effort to handle the complaint in a completely professional manner, and do not punish the employee in any way. If the person who made the complaint is still employed by your business, do not take adverse action, even if you feel they filed a false claim or acted with bad faith. It’s important not to expose your business to further litigation such as liability for retaliation.

Keep Documentation and Records

One of the most effective ways to protect your interests as a business is to identify, gather, and organize any and all documents or records that might be relevant to the disgruntled employee’s claim against your company. As an employer, you have a general obligation to save this information once a claim has been filed, but you’ll also find that this information enables your Goodyear business attorney to better understand the situation and build a stronger defense in your case. Doing so also helps protect your business against potential liability claims in the future. Keep multiple copies in different locations in case of technological failure.

Notify Your Insurance Company

This step may not apply to all situations, but should be carefully considered in case of an employee complaint. Find out whether your business holds employment practices liability insurance or a similar type of insurance coverage for these kinds of situations. Notify your insurance agent about the situation right away after a claim has been filed. It’s likely that your insurance policy will require you to provide timely notice of a legal claim. In fact, failure to notify your insurance carrier within that timeframe that a claim has been filed against your business could undermine or eliminate your insurance coverage for the situation.

Consult with an Experienced Employment Attorney

Business owners know that employment law is complicated, with many specialized rules and regulations to follow under both state and federal laws. If your business is facing a lawsuit or formal claim to a regulatory agency, it’s imperative that you consult with a qualified Chandler business lawyer as soon as possible. Your attorney will represent and advise you through every step of the process, examining the circumstances of the case and helping you to determine the best response or course of action, whether that means working toward a solution in mediation or building a strong defense for a court case. Don’t try to handle this complicated situation without the advice of an employment attorney!

Experienced Arizona Business Attorney

If your business is facing a complaint through a regulatory agency or has been sued by an employee, Denton Peterson Dunn has the expertise and experience you need to successfully handle the situation. We provide a wide area of practice including employment law, contract negotiation, franchise law, commercial real estate, and representation in virtually every sort of business-related litigation. Call our office or reach out through our website to schedule your consultation!

Brad Denton – Denton Peterson Dunn