What To do When an Employee Threatens to Sue You? 

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Managing a company might seem like an alluring profession, but the whole story is much more complicated than it might appear at first glance. To do a great job, not only should a manager know the profession down to the smallest detail, but they must also handle human resources adequately. Knowing your craft is one thing, but people function in mysterious ways.

Sometimes, even when you give all of yourself to do the right thing, conflicts will happen, and, unfortunately, they have the potential to evolve to more complicated issues, such as legal complexities. Therefore, we advise you to read through the following lines to figure out what you should do to protect your interests when an employee threatens to sue you.

Keep a Cool Head

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Do not fall into despair if an employee files a suit against you, since it will neither be the first time nor last that this happens. Probably not to you, but the aforementioned scenario is nothing unusual. Namely, both employees and employers have certain rights and should be able to seek justice legally they cannot come to an understanding differently.

In a nutshell, you will achieve nothing by making a fuss about it and upsetting yourself with potential consequences. Consequently, you might even give rise to additional complications if you act out of rage. Just take a deep breath and assess your situation before you make a move on handling the situation most efficiently.

Any Letters Recently?

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If you receive a demand letter, you might as well consider it a threat to sue you, since it precedes the actual lawsuit. The aforementioned letter should contain all the things either you or your business have not done correctly, and you should have, at least according to the employee who wants to sue you.

If you agree to pay the sum the employee lays up claim for, you will not have to go to court, but we urge you to consider whether an alternative action would bring you better than simply accepting the defeat without providing resistance. Assess the situation and potential outcomes, but make no moves until you hear what legal professionals have to say about your case.

Seek Legal Assistance

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The number of people on your payroll does not necessarily need to drop if you decide to fire the one who threatens to sue you, since a qualified legal representative might take their place. Jokes aside, you should know that you will be nothing but a sitting duck if you do not hire a lawyer.

Now, even though any lawyer is better than no lawyer at all, it does not mean you should waste your money on hiring a person without any or little experience in labor law. Moreover, you should do what it takes to spend your hard-earned money on a person that can make a difference either by winning the case or minimizing the penalties you would have to pay.

The criteria for choosing a lawyer are numerous, but, we advise you to focus on the ones such as experience in similar cases, record history, potential, and credibility, or you can consult Levitt LLP for more detailed info.

Cut Off Contact with the Employee

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It is of utter importance not to reach out to your employee upon the threat, especially if you have already received the demand letter. No matter how well-minded your intentions might be, they can also be used against you in the courtroom, and rest assured they will be if you give them the material.

The aforementioned does not exclude the option of you authorizing your attorney to act instead of you. Moreover, it is precisely what you should do, since not only is it the job of the lawyer to shape the message you want to deliver into a legal mold, but it is their duty to warn you about potentially dangerous actions you might initiate by acting unadvisedly.

Protect Your Assets

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It is the action you must take care of before the case gets to court. Otherwise, subsequent attempts will not matter. Namely, if you fail to secure your finances in time, the chances they will be used as a means of settling a potential debt are major.

Insurance sounds just like the doctor ordered, thus, we advise you to assess your options and pick a package that will protect you in case someone files a claim against your business. Insurance agents can make an offer tailored for your case, or you can choose the insurance policy you reckon fits your needs best. On the other hand, if you do not take care of everything in time, your assets will be eligible for a legal claim, which we strongly suggest you avoid at all costs.

Act Smart

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Although a certain business might appear to be functioning flawlessly, the truth is they are not as perfect as they might seem in the first place. The sooner you realize it, the more time you will have on your hands to do something about it and protect your business from potential hazards.

Successful companies recognized the pattern and realized that the most efficient way to avoid getting sued by their employees implies additional education. Namely, if an employee knows how to protect their interests at work and when to raise their voice in order to gain understanding from their superiors, there would be no need for additional legal complications.

Even though this type of investment would squeeze you some money from your pocket, we advise you to look at it as if it were a long-term venture. Training your personnel definitely costs less than financing lawyers, paying court costs, and compensating the employee if you lose the case.

Hopefully, the aforementioned pieces of information and suggestions will potentiate you prepare yourself in the best possible way to protect yourself from employees threatening to sue you. Just remember that the safest way not to go to the courtroom is to treat your personnel with respect and fulfill your part of the bargain. On the other hand, if they betray your trust and turn against you for no reason at all, you know what to do.

Written by Ana Weaver