Are Your Employees Putting Your Business at Legal Risk Without You Knowing It?

By Debbie Balfour | WBN News | April 26, 2025

One misstep by an employee can open your business up to serious legal consequences—and many small business owners never see it coming. Whether it's mishandling sensitive data, misclassifying a worker, or posting something questionable on social media, the legal fallout can be swift and expensive.

As an employer, you are legally accountable for your team’s actions—intentional or not. Small teams often run informally, but without proper structure, even a trusted employee can unknowingly put your company at risk.

Here are four high-risk areas every business owner should watch:

1. No Clear Policies or Handbook: If your staff isn’t guided by official rules regarding behavior, confidentiality, and discipline, it’s only a matter of time before confusion leads to conflict—or court.
2. Data Protection Gaps: Employees often handle personal or financial data. If it’s not stored or shared properly, your business could be liable for privacy violations under federal or provincial laws.
3. Improper Worker Classification: Mislabeling employees as contractors can lead to major penalties and back taxes during audits.
4. Brand-Damaging Online Activity: Even personal social media posts by employees can reflect poorly on your brand or spark legal action if they share company info.

Smart business owners don’t wait for trouble to strike. In business, prevention is protection—make sure your team isn’t your biggest liability.

Debbie Balfour |Real Estate Investing Success Coach | Podcast Host

Need affordable legal services that won’t kill your bottom line? Message me—I’ve got resources for you.

Websites: www.DebbieBalfour.com Email address: Debbie@DebbieBalfour.com Follow me on LinkedIn: Debbie Balfour YouTube Channel: https://www.youtube.com/@DebbieBalfour

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