Lawsuit Abuse in Employment Law

Frivolous lawsuits within the employment sector are an unfortunate reality and affect both the employer and employees alike. Added costs, decreased benefits, and time lost in responding to unsupported allegations can negatively affect the work place, especially within the small business sector.

In large part, falsified workers compensation claims top the list of abuse. In response, many businesses led in large part by small business and various state and federal organizations have joined together to reform legislation, making it more difficult for lawsuit abuse, to include increased penalties for false claims. The National Federation of Independent Businesses (NFIB) is just one of many organizations established to protect the interests of small businesses and support legislation reform in the interest of small businesses.

Documentation and do diligence on the part of the employer provides the best preventative measures for fording off frivolous lawsuits. Proper job descriptions and job classifications, checking references and background investigations prior to the employees start date, compliance with state and federal informational postings, a comprehensive employee handbook and documented employee compliance policy are just a few necessary steps an employer can take to protect themselves.