Business Law Savvy: Protect Your Business From 5 Common Legal Risks
Unfortunately, in today’s business world, it’s only a matter of time before your company is sued by someone or investigated by a government agency. However, you can reduce the odds by understanding and identifying the most common legal issues that could arise and protecting your business against them.
1.Criminal Investigation
State and federal law enforcement and government agencies proliferate with each passing day. Depending on your industry, you could be regulated by as many as ten agencies, not counting the usual, regular police departments. The power of government agencies is blinding. Recently, a trend has emerged targeting more and more companies, executives, and owners for investigation and prosecution. It has become so prevalent that all businesses must focus considerable effort on protecting their owners, employees, and operations from risk.
Adopting a policy that your company will cooperate in all government inquiries and investigations with the assistance and advice of an experienced criminal law attorney is the best way to prevent you and your employees from giving up your rights or creating further risk. Inform yourself and your employees of your constitutional rights and what procedures to follow with the advice of a criminal law specialist or attorney familiar with this trend and danger.
2. Demand for employees
Employment law is the new lottery for Plaintiffs’ attorneys who have seen tort reform narrow their playing fields. For every perceived harm, real or imagined, there is a creative lawsuit waiting to be filed. Sexual harassment, age discrimination, pregnancy discrimination, racial discrimination, gender discrimination, disability discrimination, wrongful termination, retaliation, and injury are just a few of the fertile grounds for disgruntled employees.
Clear and comprehensive employee rules and policies are the first area of defense against this type of legal threat. Develop an employee handbook and document employee files. Treat all employees with respect and with equality and consistency. Hire a business or employment attorney to review your policies and rules.
3. Cyber issues
With all businesses moving toward ever greater reliance on technology and the use of Internet communications and resources, cyber legal issues are growing exponentially every day in ways that are only beginning to be understood and anticipated.
Specific rules and policies related to employee computer access, privacy, and use are critical in business today. Please adopt, revise, revise or amend your policies and rules as soon as possible. Neglecting this area of legal threat is just asking for trouble.
4. Marital and divorce problems
If you are married or if any of your fellow owners or partners are married, there is significant risk in the field of divorce should the marriage fail.
Contractual protections in your entity documents or business agreements should address these risks so that you can continue to conduct business regardless of someone’s claims and divorce proceedings. Marital property agreements can also provide additional insulation from this threat.
5. Lawsuits for commercial contracts
Attorneys’ fees and expenses can ruin your bottom line and distract you and your employees from core business operations. Your goal should be to use contractual provisions to minimize the possibility of being sued or having to sue third parties with whom you do business.
With the proper contract clauses, you can avoid being taken to the courtroom by filing for arbitration, choosing the state in which you will be sued or in which the arbitration will take place, limit damages, and require the loser to pay the dispute resolution costs. . Many more benefits can be included in contracts to give you control over the legal process.
All businessmen and executives have the obligation and duty to their employees, shareholders, partners and families to isolate and protect their companies and operations from legal threats that threaten companies. By understanding the threats and risks, and taking proactive steps to avoid lawsuits and legal disasters, you can control your own legal destiny and gain the upper hand in any future legal battle.