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Protecting Yourself

Wrongful termination. Age discrimination. Sexual harassment.

We live in a litigious society. More and more, companies are facing lawsuits filed by disgruntled employees. Make no mistake about it: these employee actions can pose an enormous threat to your business.

Yet there is a way to mitigate that exposure – by outsourcing to an HR firm like Genesis Consolidated Services. A PEO takes on shared liability, minimizing the risks for clients and giving them added peace of mind.

Say, for example, an employee sues for wrongful termination. The PEO, as well as the company, must respond to the employee's complaint. Companies that have outside professional HR help, however, may be more likely to avert litigation in the first place because they understand the legal ramifications of an employee termination.

Sexual harassment poses another trouble spot for employers. Business owners settled over $50 million in sexual harassment claims last year, according to the National Association of Professional Employer Organizations (NAPEO), money that might have been saved if companies had proper prevention and education programs in place. A PEO can help design and enforce such policies.

"We are seeing more and more cases of employment-related litigation. This is true even in cases where employees were let go according to the strictest letters of the law," said Patty Hilger, VP of Human Resources & Operations for Genesis. "Employee management, by its very nature, comes with many legal minefields. A PEO like Genesis can help a company avoid the pitfalls and defend a legal challenge, should one come along."

Written on: 5/12/2008

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