q When Do Unfavorable Business Practices Become Illegal - OGC Solutions

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When Do Unfavorable Business Practices Become Illegal

Successful business management requires a keen eye for detail, a focus on innovation and a drive to succeed, but it’s also imperative to keep unfavorable business practices in mind.

You likely understand the necessity of providing a safe, secure environment for employees. Yet, you should familiarize yourself with some of the potential problems that, if not managed appropriately, could result in costly litigation for your business.


Three Potential Violations Of Employment Laws

Establishing policies to prevent a hostile work environment can save your company time and money by minimizing potential costs of litigation and maintaining your focus on business development. Always thoroughly document and address reports of offensive or unwelcome behavior within your company.

Not all distasteful actions are necessarily out of alignment with employment laws. However, you could face litigation for practices that include:

  • Unwelcome behaviors. Establishing a retaliation-free reporting system encourages employees to file internal complaints of sexual harassment, inappropriate behavior and perceived workplace misconduct. This can reduce legal risk to the company by providing a defined avenue for handling such issues.
  • Career interference. Consistent negative communications, actions and practices from employees can result in decreased productivity and morale among co-workers. Promptly addressing these concerns and preventing repeats of questionable acts can prevent potential legal issues in the future and promote a healthy workplace.
  • Discriminatory actions. You are probably aware that basing employment decisions on a worker’s religious beliefs, gender, national origin or race is illegal. However, you are also breaking business regulations if you discriminate against employees who take medical leave, have a disability or claim workers’ compensation.

You should consistently ensure your company is in line with business regulations, as well as address employee concerns quickly before they fest and become a part of your company culture.

You can establish expectations for interpersonal conduct at work by communicating your policies during onboarding. Considering the potential ramifications of employee allegations, you should equip your human resources department with predetermined procedures with which to govern your workplace.


Understanding how this affects the small business economy is part of our job here at Santomassimo Davis LLP, as we primarily focus in providing expert Outside General Counsel for a variety of law firms and legal issues related to Corporate and Business Law in New Jersey, New York and Pennsylvania.

Thanks for reading our latest blog talking about topical legal issues facing small businesses. Learn more from our Outside General Counsel Blogs.


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