Owning and running a business in Michigan can bring challenges. Legal risks, safety, employment, and contract laws are always factors that contribute to causes of concern for the average business owner. Even those with the purest intentions can face lawsuits that can impact their finances and general reputations. This is why it’s so important to be aware of the typical reasons that Michigan business owners get sued in order to prevent it from happening to you.
Employment Related Claims
The most common employment related claims include wrongful termination, discrimination/harassment, wage disputes, and the retaliation for whistleblowing. Something to note is that Michigan follows both state and federal laws when it comes to employment which does often trigger more lawsuits. Things like wrong documentation and lack of training can worsen liability.
The best way to avoid having to deal with these potential issues would be to maintain clear policies and be proactive when it comes to training and managing your employees. Consulting a skilled legal counsel before reaching discipline decisions pertaining to your employee is also a good idea, just for that extra layer of reassurance. Utilizing resources that are available to you such as the Department of Labor and Economic Opportunity (LEO), can also be a great way to manage any problems with unemployment/claims.
Contract Disputes
Contract disputes can result in lawsuits against the business in many case scenarios. Specifically, breaches of contract or misrepresentation claims are very commonly seen throughout the state of Michigan. Issues with nonpayment can also happen if business owners aren’t carefully up to speed with their accounts payable which can also result in lawsuits.
The best way to avoid any of these types of disputes are as follows: Use well-drafted, attorney-reviewed contracts. Using contracts that haven’t been properly looked at by licensed attorneys can miss crucial information or leave room for error. It’s always better to be safe than sorry and have everything properly checked. Next, make sure you clarify things like payment terms and deadlines with everyone involved with your business, and set your expectations from the beginning. Finally, make sure to keep written documentation of as much as you can when it comes to agreements and contracts between you, clients, employees, vendors, etc.
Premises Liability and Safety Claims
Claims related to injury in the workplace are seen often. Usually these include slip-and-fall incidents, negligent security claims, and unsafe property conditions. These claims are normally filed by employees, vendors, and/or customers. As a business, it’s important that you stay on top of your inspections. Making sure your environment is safe and contains minimal hazards will not only prevent future lawsuits but ensure the general safety of everyone who enters the business.
Intellectual Property (IP) Violations
IP Violations are commonly seen when it comes to things like infringement of copyright, trademarks, and branding. While these can be tedious, they are necessary to ensure the protection of your business. Luckily, there are steps that can be taken to minimize chances of these types of violations.
First, check that your brand materials are properly licensed. Next, be sure to search for trademarks involving your logos before launching them. Finally, protect your own intellectual property with agreements and registrations. This will prevent other people/businesses from misusing your intellectual property.
Cybersecurity Failures
Data breaches involving cybersecurity failures can trigger lawsuits. Michigan business are required to protect consumer data under the Michigan Identity Theft Protection Act, so businesses that keep this in mind are less susceptible to these lawsuits.
Ways to avoid these types of failures would be implementing strong software that prevent breaching, extensive employee training, and breach response plans. Extra levels of security such as multi-factor authentication and password protected files are also encouraged.
Protecting Your Business by Taking Legal Steps
Don’t wait to get legal representation. Take precautions by reaching out to Duff Law where experienced attorneys assist business owners by preventing costly lawsuits through strategic planning and a strong legal defense. Whether you need help updating contracts or handling employee legal complaints, Duff Law’s attorneys are here to help.