Facing Legal Issues in Business: What To Do

As a business owner, you are likely familiar with the many legal issues that can arise in the course of running your business. According to reports, 36 to 53 percent of small businesses face lawsuits yearly.

There is a multitude of potential problems that can land you in hot water. So, understanding how to manage legal issues in your business is critical to keeping your company up and running. Here are some of the most common legal issues businesses face and what you can do to avoid or mitigate them.

Employee Disputes

Conflict is an inevitable part of any workplace. In fact, studies have shown that 85 percent of employees experienced some form of conflict at work in their employment lives. But while a certain amount of tension is expected, unresolved conflict can lead to serious legal issues for your business.

Employee disputes can take many forms, from accusations of discrimination or harassment to claims of wrongful termination. As an employer, you must create a workplace environment that is free from these issues.

You can help prevent employee disputes by implementing policies and procedures that foster a positive work environment and providing training on resolving conflict. You should also have a process in place for employees to report any concerns they may have.

However, an employee may file a complaint against your business. In that case, you could be facing an investigation by the Equal Employment Opportunity Commission (EEOC) or other similar state agencies. Additionally, the employee could file a lawsuit against your company.

If this situation arises, it is essential to take prompt and effective action to resolve it. By coordinating with an experienced employment law attorney, you can help ensure that the issue is handled appropriately and in a way that minimizes risk to your business.

Intellectual Property Issues

Your business likely has some form of intellectual property, whether it is your company name, logo, copyrighted material, or patents on products or processes. Unfortunately, this valuable asset can risk infringement by other businesses or individuals.

If you believe that your intellectual property has been infringed, you should contact an attorney specializing in this law area. They can help you assess the situation and decide on the best course of action to take, whether it is filing a lawsuit or seeking a licensing agreement.

It is also essential to protect your intellectual property before an infringement occurs. This step can include filing for trademarks and copyrights and ensuring that your employees sign non-disclosure agreements. Taking these precautions can help reduce the risk of infringement and safeguard your business’s valuable assets.

Undocumented Workers

The government imposes significant penalties on employers who knowingly hire undocumented workers. The Immigration Reform and Control Act (IRCA) of 1986 requires employers to verify all new hires’ identity and employment authorization.

If you are found to have hired an undocumented worker, you could be subject to civil or criminal penalties, including fines and imprisonment. However, many businesses get wrongfully flagged for this violation.

a man in a courtroom talking to a judge

To avoid penalties, you should keep a record of the necessary documentation for all new hires. It would be best if you also had a policy verifying applicants’ identity and employment authorization. In the event that your employee gets accused as an undocumented worker, you should know where to pay an immigration bond and seek the guidance of an immigration attorney to help you navigate the situation and minimize the risk to your business.

In doing so, you can help protect your business and employees from the potential penalties associated with this issue.

Cybersecurity Issues

In today’s increasingly digital world, businesses face an ever-growing risk of cyberattacks. These attacks can have devastating consequences, including data breaches, loss of confidential information, and damage to your company’s reputation.

To combat this risk, you should implement cybersecurity measures, such as data encryption and firewalls. You should also develop policies and procedures for handling data security breaches. Additionally, it is essential to train your employees on cybersecurity best practices.

But sometimes, despite your best efforts, businesses can still fall victim to cyberattacks. If this happens, you should take immediate action to contain the damage and mitigate the risk of further attacks. You should also contact an experienced cybersecurity attorney to help navigate the situation and protect your business’s interests.

As a business owner, it is essential to be aware of the various legal issues. By taking steps to prevent and resolve these issues, you can help protect your business and employees from the potentially devastating consequences.

If you have any questions about handling legal issues in your business, don’t hesitate to contact an experienced business law attorney for more information.

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