Posted on July 23rd, 2019
Below is a complete transcription of this video.
What’s up, fellow entrepreneurs? Today I want to talk about a huge risk that most employers don’t think about or probably don’t even know about. That risk is the obligation under California Law to defend your employees in a legal action.
Okay, so that was a mouthful, but let me explain. For example, right now I have a client that’s being sued by one of their former employees because she claims that she was sexually assaulted by another employee. Now, whether that happened or not, we don’t know.
We’re still going through the evidence and trying to figure out what’s what.
However she sued both my client as the employer, but also sued the employee as the harasser. So you would think that the employee would get their own attorney and try to defend themselves. But no.
First of all, lawsuits are expensive and that’s number one.
Number two, the employer is required to defend under the law. So now if this truly did happen, you are the employee who didn’t do anything wrong.
Some employee assaulted another employee, and now you have to pay the ungodly amount of legal fees to defend them.
So one another thing under California law that you need to watch out for, and another reason to document everything, make sure the employees understand the difference between being at home or with your friends versus being at work.
And most importantly, and in this case, which was an issue, is have cameras if you can have them to show in documents so it’s not just his word against her word, because you know how that’s gonna end up in court.
All right, thanks everybody. Until next time.