No one has ever heard an entrepreneur say that they like doing all the legal paperwork involved with their business. This is because the legal issues surrounding a business operation can be complex, confusing, and expensive. No matter how much you would want to ignore them, legal issues are necessary for running a business.
We see some of the biggest names in the industry like Apple, Microsoft and Facebook and only see their eye-watering revenues. What we do not know is that these companies have hundreds of people working in their legal teams to deal with government norms, rules and regulations.
In this article, we are going to look at some of the most common legal issues, which businesses face in 2020. However, before we proceed to the list, let us first look at why settling and solving legal issues is necessary for any business.
The Importance of Navigating through Legal Issues for a Business
No matter how successful or innovative your product or service is, you need to toe the line set by the government. This means that you need to ensure that your business is a formal, legal entity following all the compliances and stipulations of the government.
Every business needs to be aware of issues like renewing licenses periodically, sales tax filing, getting certifications from different authorities and paying corporate taxes. Even if a business forgets about one of these areas, it can result in cancellation of permits, huge fines and untimely closures.
In other words, the smallest of legal issues can have major repercussions for the existence of any business. This is why you need to work with your business attorney and your CA to ensure that your business’ paperwork is always up to date at all times.
4 Common Legal Issues Businesses face in 2020
1.Harassment or Discrimination Cases from Employees-
The globalized nature of work means that people from all ethnicities and gender are working in offices. However, it is important to ensure that your company does not face a harassment or discrimination lawsuit from any of the employees. This is where your Legal and HR teams need to always be on their toes to ensure that these issues do not take place in the company.
2.Migration Audits and Issues-
Immigrant workers are becoming a major issue in 2020 thanks to the changed American foreign policy stance. If you do not ensure adequate paperwork and permits, you might get into trouble with the US Department of State. Every business should ensure that proper background checks are done before they hire any employee. Do not use illegal labor at any time in your company.
3.Problematic and Flimsy Customer Lawsuits-
In the past few years, a new strategy has emerged wherein lawyers and attorneys are forcing customers to file personal injury lawsuits against businesses. This is a strategy wherein these lawyers try to extract heavy compensations and divide the earnings between the customer and themselves. You need to ensure that your stores have adequate ‘slip and fall’ protection.
One of the most common legal issues faced by businesses is employee lawsuits relating to promotions and salary hike. Some employees who feel that they are deserving might be tempted to file such lawsuits to arm-twist businesses into paying them a handout. Regular employee audits and recorded meetings should be done by the company to keep itself safe.
The Final Word
The smallest legal issues can cause catastrophic damage to the existence of a business. By paying attention to small details and regularly updating the company’s paperwork, you can ensure that your business does not suffer from any losses arising out of these issues.