How business litigation affects staffing

On Behalf of | Jun 17, 2020 | Business Law | 0 comments

Litigation could adversely affect your company in many ways. We often see these cases take up a significant amount of a business owner’s time, cause a lot of stress and bring significant financial repercussions. However, you may see other consequences, too, especially if the lawsuit involves staff members or forces you to let hard-working employees go. 

If a lawsuit targeting your business is causing uncertainty, consider all your options carefully. 

Employee lawsuits that cause attrition 

Many lawsuits directly involve staff members. For example, a worker or a group of workers may take action because they believe the company has violated their rights. In these types of cases, repercussions are often significant if an investigation finds evidence in the employees’ favor. 

If a judge rules against you, you could face harsh financial penalties and a damaged reputation. You could also lose key staff members, which could make it even more difficult for you to recover from the litigation. 

Outside litigation that causes employee issues 

Any large judgment against your company could cause financial issues that lead to difficulties retaining employees. However, a significant loss in court could also make it difficult for you to recruit new talent. Workers may hesitate to submit a resume to a business that has recently lost a lawsuit because association with that company may tarnish their future career prospects. They may also fear that the lawsuit against the company may only be the first of many. 

Some lawsuits may be unavoidable, but any situation may benefit from a strong defense. Read more about business litigation on our website.