Statutory claims are legal rights created by laws, not court decisions, offering businesses and individuals powerful ways to address wrongs like unfair practices, workplace issues, or consumer violations. These claims often come with extra remedies like attorneys’ fees or triple damages, but they have strict rules. Knowing these laws helps you protect your business, seek compensation, or avoid costly mistakes.
Statutory claims might sound like legal jargon, but they’re a game-changer for business owners. Unlike traditional lawsuits based on contracts or injuries, statutory claims come from specific laws passed by Congress or state legislatures. These laws create rights and remedies to protect consumers, employees, and businesses from unfair practices, discrimination, or other harms. For small business owners, understanding these claims can mean the difference between winning a case, ensuring compliance, or avoiding hefty penalties.
In this guide, we’ll break down statutory claims in plain English, explain why they matter to your business, and share practical tips for using or defending against them. Let’s dive in!
What Are Statutory Claims?
Statutory claims are legal rights created by specific laws, not by judges or contracts. Think of them as tools the government gives you to fight unfair treatment or protect your business. These laws exist to tackle issues like:
- Consumer protection: Stopping deceptive business practices or unfair debt collection.
- Workplace fairness: Preventing discrimination or ensuring proper wages.
- Environmental and safety rules: Holding companies accountable for violations.
Unlike traditional lawsuits, statutory claims often come with perks like attorney’s fees, triple damages, or easier proof requirements, making them powerful for small businesses or individuals. However, they also have strict deadlines and procedures you must follow.
Why Statutory Claims Matter to Your Business
Statutory claims can help or hurt your business, depending on how you approach them. Here’s why they’re important:
- Extra Remedies: Many laws let you recover attorney’s fees or multiplied damages, making it easier to afford a lawsuit.
- Lower Proof Barriers: Some claims, like North Carolina’s Unfair and Deceptive Trade Practices Act, don’t require proving intent—just that harm occurred.
- Compliance Risks: Ignoring these laws can lead to lawsuits with big penalties, especially for businesses in regulated industries like retail or employment.
For example, if a competitor uses false advertising to steal your customers, you might use a statutory claim to recover losses and stop their behavior. On the flip side, failing to pay overtime correctly could lead to a claim against your business.
Key Federal Statutory Claims for Businesses
Federal laws create many statutory claims that can affect your business. Here are some common ones:
Employment Laws
- Title VII, ADA, and ADEA: These protect against discrimination based on race, disability, age, and more. Remedies include back pay, punitive damages, and policy changes.
- Fair Labor Standards Act (FLSA): Ensures proper wages and overtime. Violations can lead to double damages plus attorney’s fees.
Consumer Protection
- Fair Debt Collection Practices Act (FDCPA): Limits how debt collectors operate. Violations can mean $1,000 per incident plus damages.
- Telephone Consumer Protection Act (TCPA): Restricts unwanted telemarketing calls or texts, with penalties up to $1,500 per violation.
Securities and Antitrust
- Securities Laws: Protect investors from fraud, offering compensation for losses.
- Antitrust Laws: Stop monopolies or price-fixing, with triple damages for violations.
North Carolina Statutory Claims
If you operate in North Carolina, state laws offer additional protections:
Unfair and Deceptive Trade Practices Act (Chapter 75)
This powerful law covers any unfair or misleading business practice, like false advertising or broken promises. It’s a favorite for businesses and consumers because:
- You can recover triple damages.
- Attorney’s fees are often covered.
- You don’t need to prove the other side meant to deceive.
Unfair and deceptive trade practice claims are not easy to bring, and they usually require some additional element, such as fraud, to be successful.
Wage and Hour Act
This ensures timely wage payments. Violations can lead to double damages and attorney’s fees.
Identity Theft Protection Act
If your business suffers a data breach, this law offers remedies for affected customers.
Retaliatory Employment Discrimination Act (REDA)
Protects employees from retaliation for reporting workplace issues, such as safety violations or workers’ comp claims.
How to Use or Defend Against Statutory Claims
Whether you’re pursuing a claim or protecting your business, here’s how to approach statutory claims:
- Identify Relevant Laws: Work with an attorney to find applicable statutes. A simple contract dispute might also involve a statutory claim if deception occurred.
- Follow the Rules: Statutory claims often have strict deadlines or notice requirements. Missing these can kill your case.
- Assess Remedies: Look for laws offering attorneys’ fees or extra damages to make your case financially viable.
- Stay Compliant: Regularly review your business practices to avoid violations. Train employees and document compliance efforts to reduce risks.
Statutory Claims vs. Traditional Lawsuits
Statutory claims don’t replace contract or tort lawsuits—they complement them. For example, if a supplier breaks a contract and lies about their product, you could file:
- A contract claim for the broken agreement.
- A tort claim for fraud.
- A statutory claim under Chapter 75 for deceptive practices.
Each claim offers different remedies, giving you multiple ways to recover losses.
When to Call a Lawyer
Statutory claims are complex, with technical rules and big rewards (or risks). Consult an attorney if:
- You think someone violated your rights under a law.
- You’re facing a lawsuit with statutory claims.
- You want to ensure your business complies with regulations.
An experienced lawyer can spot hidden claims, navigate deadlines, and maximize your recovery.
The Bottom Line
Statutory claims are powerful tools for protecting your business or seeking justice when wronged. They offer unique benefits like extra damages and attorneys’ fees, but they come with strict rules. By understanding these laws, you can use them to your advantage or avoid costly violations.
If you need help with statutory claims or compliance, Revolution Law Group can guide you through the process. Contact us today for a consultation to protect your business and explore your legal options.
FAQ: Statutory Claims for Business Owners
What’s the difference between statutory claims and regular lawsuits? Statutory claims come from specific laws passed by Congress or state legislatures, offering unique remedies like triple damages or attorneys’ fees. Regular lawsuits (contract or tort) are based on agreements or judge-made rules and often have fewer remedies.
How do I know if I have a statutory claim?
If you’ve been harmed by unfair practices, discrimination, or wage issues, a specific law might apply. Consult an attorney to identify relevant statutes and check for violations. What are the risks of statutory claims for my business? Violating laws like wage or consumer protection statutes can lead to lawsuits with hefty penalties, including triple damages or attorney’s fees. Regular compliance reviews can help you avoid these risks.
Can I afford to pursue a statutory claim?
Many statutory claims include attorney’s fees as a remedy, making them more affordable to pursue than traditional lawsuits. An attorney can assess if your case qualifies.
How can I stay compliant with statutory laws?
Regularly review your business practices, train employees on legal requirements, and document compliance efforts. Legal audits can catch potential issues early.
Revolution Law Group is located in Greensboro, NC, and serves individuals and small businesses throughout the Triad and surrounding areas. To contact us please visit Revolution.law or call 336-333-7907.
The information included here is for informational purposes only, is not exhaustive of all considerations when creating documents, is not intended to be legal advice, and should not be relied upon for that purpose. We strongly recommend you consult with an attorney and do not attempt to create your own documents.