When your employees’ statements can be held against you in court

Business owners may not realize that statements by their employees could be used as evidence against the business in litigation. An adversary seeking to introduce evidence of an employees’ statements does not even have to subpoena the employee to testify in court. Instead, the employees’ statements may be admissible hearsay under the rules of evidence. Although this is currently only allowed in limited circumstances, New York State is considering making the rule broader, which could have a significant impact on businesses.

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