7 Most Common Lawsuits Against Businesses

3 min

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When we start a new business, we don’t necessarily think about legal issues, as most of us focus on sales, product viability, and profits. Nevertheless, a single mistake and a subsequent lawsuit can completely ruin our company.

Because of that, you must learn more about potential legal risks ahead of you. As a serious entrepreneur, you need to create a safe environment for your employees and anyone else who might work with your organization.

1. Personal Injuries

First thing you need to remember is that your company is fully responsible for all injuries that might occur on premises. “You should especially be worried about slip and fall lawsuit,” warns Stein Law, a veteran legal practice from Florida. Employer is responsible for marking any wet spots in the office so these mishaps don’t occur.

The number of potential personal injuries increases with the complexity of the business. For example, it isn’t uncommon for an employee to lose a limb while on the production floor due to poor training and a lack of safety standards. In a bustling metropolis like New York City, the need for diligent Spar & Bernstein Wrongful Death Lawyers can’t be overstated, safeguarding your business from potential legal entanglements. Because of that, you need to learn more about potential injuries your staff might suffer and introduce proper measures to prevent them.

2. Wrongful Termination

At the end of the day, we’re all humans. Each of us has a specific belief system and might work better with this or that person. Because of that, we often get into conflict with people for the smallest of reasons. Sometimes, we might even fire a person just because we don’t like their mindset, even if they’re producing well.

Sacking a staffer for the wrong reasons can lead to a wrongful termination lawsuit. Perhaps the most common reason for wrongful termination is pregnancy and extended leave. Some managers also fire employees because they don’t react to their sexual advances or are unwilling to work for extended time.

3. Harassment

Speaking of harassment, this is one of the most common issues that companies face nowadays. The biggest problem is that you’re not only responsible for the actions of your management but also of your staffers.

The most common type of harassment lawsuit is sexual harassment. However, an employee might also sue you if other employees and managers badgered them verbally or physically. As an owner, it is your job to create a welcoming environment where everyone will be respected and where these things won’t occur.

4. Breach of Contract

When creating contracts with your employees and partners, you need to pay special attention to the fine print. Your legal team needs to go through all points slowly and patiently to create an agreement best suited for your business. Otherwise, there’s a chance you’ll breach the contract in the near future.

It’s vital that you adhere to terms of the contract at all times. For example, if it’s a contract with suppliers, you need to pay them according to dates formulated in the contract. With client contracts, you need to deliver products and services in time and to perform job as outlined in the contract.

5. Discrimination

Any party can sue you for discrimination, from employees to business partners. According to the law, businesses are responsible for treating everyone equally, regardless of their culture, religion, sex, military status, age, and race.

A good rule of thumb is to refrain from starting any business with partners you don’t support. Similarly, you should avoid hiring someone who doesn’t sit well with you (although this also might be a cause for a lawsuit). Like with harassment lawsuits, the best way to avoid discrimination issues is by treating everyone equally and judging them based on job performance.

6. Intellectual Property

It’s no secret that all companies copy ideas from other businesses. While this practice might go unnoticed on a smaller scale, it might get you in trouble if you go overboard. Specifically, stealing other companies’ branding ideas, products, and technology puts you in danger of an intellectual property lawsuit.

Because of that, it’s critical you check other available solutions on the market and compare them to your own before releasing the product. Every country has a patent organization where you can learn more about the technology that has been previously patented. You can even search Google via USPTO.

7. Wage and Hour Disputes

Wage and hour disputes are one of the most common issues you’ll encounter as a business owner. In many cases, a manager and employee might have a handshake agreement on some of the things, such as extra work. In all other cases, you need to rely on a contract to resolve issues with your staff.

Among other things, your main job is to pay everyone properly. All employees should receive a paycheck according to federal and state laws, and you also need to provide medical and family leave when applicable.


As an entrepreneur, you need to be careful about your rights and obligations. You need to create ironclad contracts that will cover all aspects of your business, outlining all your dealings with employees, suppliers, and other stakeholders.

Small mistakes such as not calculating wages properly can be costly, which is why you need to perform due diligence. Having a good legal team is also recommended, as these experts can prevent any mistakes you might make along the way.

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