Lawsuits are a leading cause of problems for companies that do not play it safe. When a major lawsuit hits, due to an employee claim, this can undermine the very financial basis on which a company is established. The impact of a lawsuit will not only make things difficult for a company's bottom line, it will often create problems for other employees as well. This can arise in the form of stricter policies and even layoffs. Such measures are often seen as essential to restoring a company's foundational means of operation. Yet, such moves can often create more problems than they solve. The following are some tips that will help to improve overall employee safety without causing your employees to be overly unhappy in the process.

The Toxic Work Environment

One place to focus when making improvements is the work environment. Are the people working for you prone to hostility towards one another? Is one or more of your employees the subject of abuse by other employees? Whether you realize it or not, these factors all scream of a lawsuit waiting to happen (and research confirms it). Every employee, no matter how high or low they are on the proverbial totem pole, should be made to sign an acknowledgment of the company's comprehensive code of conduct in order to work for your company. Employees who continue to violate this code, after being made aware of its provisions, should be reprimanded and potentially fired if necessary to restore order and respect into the workplace. The less hostility that exists among coworkers, the less likely there will be an opportunity for any type of hostile work environment-based lawsuit to surface. It should be noted that employees today are not as tolerant of these types of experiences as employees were in the past. In many situations, the courts prefer to side with the employee and hold the business and its owner liable for such hostile conditions in the work environment.

When Being Cheap Is Dangerous

Many employers try to be cheap. Lowering worker wages below industry standard may be overlooked as the boss just being a penny pincher. Being so cheap that it becomes dangerous to employees and clients may prove to raise some eyebrows. This will be especially true if an employer's cheapness actually is cited as the cause for why someone got hurt on the job. If that someone is an employee, it will undoubtedly lead to a hefty lawsuit that costs far more than the amount saved by being cheap.

Proper Workplace Safety Equipment

Safety should always come first in the workplace. This means providing your employees with the proper safety equipment for the job. Obtaining a risk assessment to ensure that all the bases are covered is always a smart idea too. If it is ever an issue, ask a qualified attorney if it is a good idea to skip out on providing proper safety equipment. They will likely explain how failure to do this will increase their income rate exponentially at the business owner's expense. This is certainly an important issue in a warehouse, where such safety items as forklift safety cages, fully certified lifting jibs and lifting hoists, just to name a few, are needed to get the job done while ensuring it is done safely. If you don’t believe me, just check the statistics for injuries, the figures speak for themself.

The Background Check

Before you hire an employee, it may be smart to perform a background check. Although it may not seem like such a big thing at first, hiring a person with an extensive criminal record could put a business owner and their employees in a dangerous situation. This is especially the case when a background check reveals that a potential candidate for employment has exhibited a lengthy record of violent behaviors. Does this type of person really belong in a key position of the company, or would it be better to hire a person who does not appear to have a background that could pose a threat to the company's other employees? Part of avoiding these types of workplace endangerment lawsuits comes down to limiting potential liabilities before they even present themselves as a problem. Another example where background check might be very useful is if your business has some valuable secrets of the trade that would be valuable to your competitors. If you think that corporate espionage is just a myth, check these famous examples - it does happen.

Conclusion

Running a business comes with a host of problems. Many of these problems have the potential to encourage an employee to take out a lawsuit against a company or its owner. From a toxic work environment to negligent safety standards and equipment, the impact of a lawsuit is often easily avoided with a little forward thinking and planning. Why risk a lawsuit if it really is not necessary? A company's bottom line is often best preserved by the lawsuits it takes the time to avoid.