Employment law issues are among the main reasons small business owners find themselves in court. The ordinary tasks of hiring and firing individuals, as well as the day-to-day requirements of employing people, expose business owners to a wide range of legal issues.
Many small business owners are not aware of the various local, state, and federal laws that apply to the employer-employee relationship. The laws can be confusing because some don't apply to small employers, but it doesn't take many employees before a host of legal requirements do apply. The exceptions are very limited.
Unhappy employees or former employees will find time to study the laws and look for ways to exact revenge for what they may believe are slights or great injustices. The best defense is to be proactive and assess the strengths and weaknesses of your employee relations. Have a legal audit done and fix or improve any gaps your business may have. The employment relationship is one of the most important relationships people have and the laws and regulations are constantly changing.