5 Most Common Lawsuits Against Businesses
One of every business owner’s biggest fears is to get sued. Different types of businesses are at different levels of risk. However, some types of lawsuits are common across the board. Here are the top 5 types of lawsuits against businesses.
Discrimination Against Workers
Discrimination is any bias against a worker for things such as race or gender. Discrimination is the easiest and most common reason for a lawsuit, because workers are protected by federal law against discrimination.
Another part of discrimination is harassment. This is any unwelcome conduct based on discrimination. If a worker claims to have reported harassment to you, the business owner, and no one takes action, the worker can sue.
Lastly, retaliation is grounds for a lawsuit. This is the action of punishing an employee for filing a discrimination complaint. This could mean demoting or firing them, or creating a hostile work environment for them.
Discrimination Against Customers
Your employees are not the only ones who could sue you. Customer discrimination lawsuits are very common. For example, a customer in a wheelchair could sue if your establishment did not have a wheelchair ramp.
Wage Law Violations
Wage and hour laws can be local, state or federal. Lawsuits can be filed against employers who violate any of these laws. Most of these lawsuits involve the employer paying less than minimum wage or refusing to pay overtime for hourly employees.
When a person’s civil rights are violated, the consequent lawsuit is called a tort. One of these is negligence, which means the violation was unintentional, but rather out of the business owner’s failure to do something prudent. For example, not putting out a wet floor sign could result in a tort being filed when a customer slips and becomes injured.
The other type of tort is an intentional violation of rights. An common example of an intentional tort is fraud, which is the act of deceiving a person or group of people that results in personal or financial gains.
Breach of Contract
A breach of contract is a lawsuit between businesses. If both businesses agree to a contract and its terms, and one does not follow through with their agreement, that business owner can be sued.
One thing to consider when thinking about protecting your business from lawsuits is a Business Owner's Policy. Call an Infinity agent with any questions or to buy a policy at 1-800-INFINITY.
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