1) Employee duties and obligations are not made clear by the employer. Employees who sue for this reason often feel as if they were exploited in their line of work. Maybe they werent briefed properly on the scope and limitation of their job. It is important for you to provide an employees handbook and dedicate a few days for training and orientation. Make sure that each employee understands their duties and responsibilities.
2) A long term employee gets terminated. There are many cases of an employee who has clocked in twenty or forty years of his or her life and when the time for termination, they feel that it is unfair. Most of the time, they might want a fairly larger compensation because of their loyalty to the company and you do have the moral duty to reward them for that. If however they are suing for an unreasonable amount, you dont have to worry as long as you provided them with appropriate compensation, meals, allowances and overtime pay.
3) Employees just trying to weasel some money out of you. It would be a wise idea to be alert to any signs that an employee might be money hungry. If he or she is always asking for a raise or complaining that the pay is not enough or drops hints about having some financial trouble, these are signs that the employee might resort to some lawsuit to file against you. Employees who are money hungry try to use the legal system to their advantage to obtain money from their employers. Keep vigilant about the records of employees like these or do not hire them in the first place.
4) Lawsuits based on religion. Watch out for employees who display overzealous religious practices. This involves as a potential for a lawsuit on religious discrimination to take place. Before you get slapped with any lawsuit take care to understand your employees faith. Show utmost respect and try to get to know the religion as much as you can for this will serve as a good defense in case you do get sued.
5) Mistreated Employees. Take double care that your payroll checks do not bounce, that they dont come late and that everything is accounted for. Do not make mistakes in your employees wages. Workers work hard for their salaries and when the day comes, they look forward to their fair share. Salaries and wages are important to your employees and most will be sensitive about it. If you are not careful, a lawsuit for mistreatment might be slapped against you.
These are all valid reasons for an employee to sue. Take care in handling your people. Be fair and treat them right and keep working conditions healthy. With these in mind, you should have a proper working environment.