California is well-known for its strict yet comprehensive labor law system. While the law may provide support to employees, it can also be disadvantageous to employers. What’s worse is that many unethical attorneys will seize the opportunity to earn large amounts of profit with lawsuits against employers.

If you feel discriminated against or uncomfortable because of a comment your employer made, you can easily turn it into a sexual harassment in the workplace case. Having to deal with lawsuits can make it difficult to become an employer in California. According to labor law attorneys, three of the most common lawsuits involve contract disputes, regulatory disputes, and labor disputes.

Once you are dealt with a lawsuit, you have to invest a lot of time, energy, and money into these cases. But all of this can be avoided with the appropriate actions. Take a look below to see what measurements you can take as an employer to protect your business from lawsuits!

How to Avoid Contract Disputes

Consult a lawyer before making any purchases or transactions to make sure you are performing proper due diligence. There have been cases where immigrants could not understand the content of the contract, which resulted in a lot of trouble. With the recent increase in immigrants, there has also been an increase in immigrant lawyers who are bilingual and can help with the situation.

How to Avoid Regulatory Disputes

Using the American Disability Act as an example, employers should make sure that the parking spaces in their lots are clearly marked and designated, the height of the desks are reasonable, the bathroom handle is within reachable distance, and many more. Employees must be trained to appropriately handle ADA related situations and should know to follow ADA requirements to prevent making the customer feel discriminated against.

How to Avoid Labor Disputes

If a company has more than two employees, then an employee handbook must exist and must include the company policies. If a company has more than five employees, then the employee handbook must have a written company policy against harassment, discrimination, and retaliation. Wages and salaries must meet the minimum wage requirement as stated by California law. Different cities have different requirements, so it’s important to make sure your business is following the correct set of regulations and to stay aware of your city’s regulations. It is also recommended to not use cash to pay employees for many various reasons. It’s important to note that if employees work an eight hour shift, they are allowed to have two ten-minute breaks (without clocking out) and a 30-minute break without pay.

Employment Practices Liability Insurance (EPLI)

Employment Practices Liability Insurance (EPLI) protects your business against employment-related claims and provides funds to handle and settle lawsuits. When companies are dealing with claims such as wrongful termination, discrimination, sexual harassment, and retaliation, EPLI can provide the necessary lawyers and funding to handle these cases. Whether your company wins or loses the case, legal costs will be covered by EPLI.  This usually does not cover fines or punitive damages for civil and criminal cases.

As a business owner or a manager, how can you avoid labor lawsuits? KCAL Insurance Agency is hosting a “Labor Law Seminar” on May 2, inviting attorneys at law to discuss the latest labor laws and regulations, as well as how to strengthen the company’s HR system. The seminar will be conducted in Chinese. Business owners and managers are free to attend. Spots are limited, first come first serve!


Labor Law Seminar


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