What Should You Do If an Employee Sues Your Company?

Guidelines for Dealing with Lawsuits

As the saying goes, knowledge is power, and knowing what steps are important to take when facing a lawsuit can help you take effective and quick action to protect your interests.

Consult with an Employment Defense Lawyer

The first and most important step to take is to review the lawsuit with an experienced employment defense attorney. You can learn more about your legal rights and find out the best way to deal with the lawsuit. Your attorney will have you preserve any documentation or records that relate to the case, which could include the following:

  • Written documents
  • Reports
  • Emails
  • Web pages
  • Photos
  • Videos
  • Voice messages
  • Text messages
  • Any other electronic communications

Do Not Personally Communicate with the Plaintiff

Once an employee has filed a lawsuit, direct contact with the plaintiff about the lawsuit is not wise because anything you say could be misconstrued or used against you. You should have your employment defense attorney handle all communications with the plaintiff’s attorney.

Consult with Your Insurance Agent

Many lawsuits fall under the umbrella of a liability insurance policy, depending on what your policy covers. For example, employment practices liability insurance frequently covers a lawsuit and pays for attorney’s fees, court costs and a settlement or judgment.

Do Not Ignore the Lawsuit and Take Action Right Away

The worst thing you could do is to ignore the lawsuit, hoping it will go away.

Time limitations exist for lawsuits, and ignoring the lawsuit could lead to the plaintiff filing for a Request for Default. A Request for Default would result in the plaintiff automatically winning the case and the court rendering a judgment against you. If this happened, you would be forced to comply with the court’s judgment.

Our attorneys at Stephen Hans & Associates are glad to discuss employment concerns and help business owners meet their legal needs.

(Reference: Business News Daily)