What Types of Lawsuits Are Brought Against Connecticut Small Businesses?

Law Offices of Peter V Lathouris LLC Jan. 28, 2021

There are many perks to being a business owner, but you must always be vigilant for legal mistakes that could make your company vulnerable to lawsuits. A lawsuit against your small business has the potential to destroy not only the company but your personal finances as well. Preventing lawsuits is a vastly superior strategy compared to dealing with lawsuits once they have already been filed. One of the best ways that you can minimize the chances of your business being the subject of a lawsuit is to work with an experienced business law attorney.

Lawsuits that Could Dramatically Impact Your Business

Unfortunately, there is no way to guarantee that your business will never be sued. However, there are many steps you can take to lower the chances of being successfully sued as much as possible. Some of the most common lawsuits affecting small businesses include:

  • Wage and hour law violations – Adhering to federal, state, and local wage laws is an absolutely crucial aspect of managing employees. One of the most common mistakes business owners make is misclassifying employees as independent contractors. If you misclassify workers, you may be subject to back taxes of up to 41.5 percent of the workers’ wages. You may also be required to pay back wages for up to three years and contend with heavy fines.

  • Discrimination lawsuits – A variety of state and federal laws protect workers from discrimination. It is crucial that your business complies with the Americans With Disabilities Act, Civil Rights Act, Equal Pay Act, Pregnancy Discrimination Act, Age Discrimination in Employment Act, and other anti-discrimination laws. If you are worried about being the subject of discrimination, retaliation, or wrongful termination lawsuit, there are several things you can do to protect yourself and your business. Make sure that you have a comprehensive employee handbook that describes hiring and firing procedures, rules, and disciplinary procedures. Conduct regular employee performance evaluations and keep detailed records about any employee issues that arise.

  • Breach of contract – As a business owner, business contracts are probably the primary way that you establish relationships with other individuals and businesses. Disputes over employment agreements, service contracts, nondisclosure agreements, non-compete agreements, and other business contracts can lead to immense legal and financial consequences.

  • Lawsuits related to intellectual property – Intellectual property may not be high on your list of concerns as a business owner. However, even the accidental use of copyrighted, trademarked, or patented material can result in massive intellectual property disputes. You could be accused of intellectual property theft for something as small as using an image from the Internet as your business’s logo.

Contact a Stamford, CT Business Lawyer

If you own a small business or are thinking about becoming a business owner in Connecticut, there are almost countless legal issues you must consider. One of the best ways to avoid getting into legal trouble is to work with a skilled Norwalk business law attorney who can help you protect your livelihood. To schedule a free consultation at the Law Offices of Peter V. Lathouris, LLC, call us today.