Companies can take several proactive steps to help protect themselves from potential lawsuits by employees. For example, a signed acknowledgment in an employment application of the individual’s at-will employment status (and what that means), or a clearly written and well-placed disclaimer in an employee handbook, can help defeat a breach-of-contract claim. A widely disseminated and effectively enforced antiharassment policy has the potential to shield a company from liability for hostile work environment claims. For employers who prefer to avoid jury trials, arbitration agreements, when properly drafted, can force individuals to pursue work-related claims in a nonjudicial forum.

Another tool available to employers, although perhaps not used as frequently, is an agreement that requires employment disputes to be filed within a period of time that is shorter than the applicable statute of limitations. A recent case decided by the federal district court in New Jersey illustrates how this may be accomplished.

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