7 Common Legal Issues Employers Face

Common Legal Issues Employers Face

In every country, different state and federal laws are set in place to ensure employees get fair treatment. Unfortunately, employers overlook these regulations and continue to treat their staff unjustly. What they fail to realize is that their actions can have severe consequences. After all, employees have every right to take legal action and file a lawsuit.

Therefore, companies today should be aware of legal problems involved in an employee-employer relationship. They must establish policies that outline corporate behavior towards staff and business partners. Similarly, companies have to stand behind the products and services they produce to ensure they are safe for consumers. All the laws governing workplace culture and protecting consumer rights are available online. Thus, ensure you are familiar with every clause.

If you are still wondering what issues can arise in your organization, have a look below. Here we have highlighted seven common legal issues employers face nowadays.

1.   The Family & Medical Leave Act

Under the family and medical leave act, every employer has to give 12 weeks of paid leave per year. Employees can use this leave to battle minor or life-threatening illnesses like cancer or mesothelioma. Likewise, women can give birth and care for a newborn child.

Unfortunately, not every employer is offering paid leaves. If you witness something similar happen in your organization, immediately look for an attorney in your region. Perhaps, you can begin a California lawyer search if you are in San Diego, San Francisco, or any of the cities in California. An attorney will file a lawsuit to ensure the employer follows the family and medical leave act.

2.   Wrongful Termination

Do you know any employee who got fired for the wrong reasons? Employers often fire their subordinates for petty reasons such as unsuccessful projects, punctuality issues, etc. Similarly, some employers fire for being too old to report illegal activities. That happens because the employer is unaware of labor laws; as a result, they violate them.

Terminating an employee for wrong reasons gives them full authority to make a case against that company. The employee can highlight the issues they faced before a jury, and the court will decide how to penalize the company.

3.   Harassment

Many workplaces have a culture of bullying. Not only do new employees get bullied, but lower-level staff also face harassment by the managerial level employees. At times, managers create a hostile work environment; their actions make it impossible to get the job done. Perhaps, your boss might ask you to conduct a financial analysis of 20 companies in one day.

Similarly, quid pro sexual harassment has also increased in workplaces. It involves one person offering some benefit in exchange for a sexual favor. Employees must report the harassment case to HR and file a lawsuit in either case.

4.   Defective Products

Every product has an implied warranty that consumers can claim in case of faulty products. Similarly, some companies also offer express warranties to cover specific problems with time limits. However, many organizations refuse warranty claims without realizing they are legally obliged to accept claims. As a result, dissatisfied customers file class-action lawsuits against the company. In addition to affecting finances, such lawsuits can damage a company’s brand image.

Therefore, every organization should integrate quality management into the production line. They should also test their products to detect problems before launching them. It will reduce the likelihood of faulty products.

5.   Violation of Privacy Laws

As we live in a data-driven world, everyone’s data is vulnerable. Companies have stored heaps of information on employees and customers. However, employers are unaware that they cannot use this data in advertisements or anywhere else. They have to seek approval from the concerned person before sharing data. But unfortunately, employers don’t pay any heed to this.

Sharing data across different platforms is a violation of privacy. In addition, it infers employee endorsement of the company’s products. Employees and customers have every right to file a lawsuit and penalize the companies for their wrong actions.

6.   Patent Infringement

Startups bring a lot of innovative products and technologies to the market. But sometimes, they face challenges from other companies due to patent infringement of their ideas and products. Those companies claim the startup has copied their products or services. In turn, this leads to lawsuits. Before you experience anything similar, get trademarks for your products and services. Once you have everything registered, no one can fight against your company. Remember, you have to follow the legal guidelines and develop your product.

7.   Discrimination

Even though we live in the 21st century, workplace discrimination is still common. The federal government has laws forbidding discrimination, but employers fail to adhere. Many organizations still treat employees from unique backgrounds and races differently. Besides this, gender discrimination is also widespread. Most women aren’t promoted to leadership roles, considering they can’t manage the company with their families. Employees have every right to file a lawsuit and get the employer punished in these cases.

Final Thoughts

Most entrepreneurs forget about laws, regulations, and policies in the race to maximize profits. They become oblivious that their business can face legal issues at every turn. It could arise within the company, such as an employer filing a lawsuit against the wrongful termination. Similarly, consumers can sue the company for data leakages or defective products. Therefore, every employer must adhere to workplace laws to keep themselves out of hot water.

David Leroy Anderson Personal Life & More

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