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Practices to Protect Your Small Business from Employee Lawsuits

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Practices to Protect Your Small Business from Employee Lawsuits

By jdelung, Contributor
Published: December 18, 2013 Updated: December 18, 2013

Getting sued by current or former employees happens more often than you might think. In fact, the number of lawsuits filed regarding wage-and-hour laws alone in 2011 went up 32 percent from just three years prior. Don’t be too busy to check in and ensure you aren’t breaking laws or otherwise opening yourself up to a potential lawsuit — no small business owner has the time, or money, for that.

There’s a plethora of advice out there on the subject of protecting your business from lawsuits. Before you read on, remember, you should always consult your legal counsel to ensure you are complying with federal and state laws. Laws regarding certain practices, such as non-compete agreements, vary widely from state to state.

Information and resources on avoiding legal trouble

We’ve compiled a list of some of the most helpful tips from around the Web.

When in doubt, consult your legal counsel. However, by taking some preventative measures, you could avoid legal issues before they start.

About the Author:

Joshua DeLung


I am an author for the the SBA.gov Community. I write about useful topics for your entrepreneurial endeavors and help point you in the right direction to find other resources for your small business needs. Our ongoing goal is to improve this site to meet your needs, so we're happy to receive your feedback and participation. Thanks for joining our online Community here at SBA.gov!


A bunch of employees that left a company I worked for sued for discrimination. I guess it can happen anywhere.


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