Employment lawsuits are a significant risk for businesses in California, where labor and workplace regulations are among the most comprehensive in the country. Claims involving harassment, discrimination, retaliation, wage and hour violations, and wrongful termination can quickly escalate into costly disputes. While no business can eliminate risk entirely, proper preparation can protect your company and strengthen your defense if a lawsuit arises.
Review and Update Employee Policies
A strong defense begins with clear and legally compliant policies. Your employee handbook should include up-to-date information on anti-harassment rules, wage and hour requirements, overtime policies, complaint procedures, accommodations, meal and rest breaks, and remote work expectations. Policies must comply with California labor laws, which are updated frequently. Regular reviews ensure your business remains protected.
Train Supervisors and Managers
Many employment lawsuits stem from managerial mistakes. Providing training on documentation, communication, performance evaluations, disciplinary procedures, and legally compliant decision-making reduces these risks. Managers should understand how to respond to internal complaints, identify signs of discrimination or harassment, and avoid retaliatory behavior.
Maintain Comprehensive Documentation
Accurate documentation is one of the strongest tools your business has in defending itself. Keep detailed records of performance reviews, attendance, warnings, investigations, payroll, and compensation. In cases involving discrimination or retaliation, documentation can demonstrate that decisions were based on legitimate business reasons rather than unlawful factors.
Respond Promptly to Employee Complaints
Ignoring or delaying responses to employee concerns increases the likelihood of litigation. Your business should have a clear reporting process and a documented investigation protocol. Every complaint should be taken seriously and followed with a prompt, impartial review. Demonstrating that your business addressed concerns appropriately is a critical part of legal defense.
Audit Payroll Practices and Classification
California’s wage and hour rules are strict and frequently a source of claims. Employers should audit overtime calculations, break compliance, timekeeping systems, and employee classifications. Misclassifying workers as independent contractors or exempt employees can lead to significant penalties. Regular payroll audits help prevent these issues before they reach a courtroom.
Consult Legal Counsel Before Terminating Employees
Many lawsuits begin after termination. Consulting with employment counsel before making termination decisions helps ensure that the reasons are legally sound and well documented. An attorney can help identify potential risks and recommend steps to reduce liability.
How SBEMP Supports Employers
SBEMP’s employment law team works with businesses across California to strengthen compliance programs, prevent disputes, and defend against lawsuits when they occur. Whether you need help updating policies, auditing payroll practices, or handling a sensitive employee issue, our attorneys offer proactive guidance to protect your company.
Have any legal questions? Contact the Attorneys at SBEMP Law Firm:
For more information or to request a consultation please contact the law offices of SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) by clicking here.
SBEMP LLP is a full service law firm with attorney offices in Palm Springs (Palm Desert, Inland Empire, Rancho Mirage, Indian Wells), CA; Indian Wells, CA; Costa Mesa (Orange County), CA; San Diego, CA; New Jersey, NJ; and New York, NY.
DISCLAIMER: This blog post does not constitute legal advice, and no attorney-client relationship is formed by reading it. This blog post may be considered ATTORNEY ADVERTISING in some states. Prior results do not guarantee a similar outcome. Additional facts or future developments may affect subjects contained within this blog post. Before acting or relying upon any information within this newsletter, seek the advice of an attorney.