From the course: Certification Prep: Professional in Human Resources (PHR)®

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Managing legal risks

Managing legal risks

From the course: Certification Prep: Professional in Human Resources (PHR)®

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Managing legal risks

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- Even the most seasoned HR pros recoil if they see their name mentioned in a lawsuit. Unfortunately, this can happen. Often it's just a mention by the former employee that they spoke with HR or that HR issued a written warning, which is a normal part of the job. So how do you avoid being engaged in a lawsuit? Well, you can't, but you can recommend and implement best practices that will help your company either prevent or effectively manage litigation. Legal risks run the gamut. A risk is any uncertainty you may have about an outcome. A legal risk in business is the potential for financial loss, or loss of reputation due to breaking a law or not complying with a regulation. Your company can be exposed to the risk of a lawsuit because an employee gets hurt by a gun fired accidentally at work in an open carry state. A legal risk can even take place during the recruiting process. For example, a legal risk is created if an employer finds out a candidate's sexual orientation and then…

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