When a business violates federal law, sometimes, federal agencies send that business a warning letter informing the business of the legal violation. Most importantly, the business is given a fixed amount of time to reply, which is crucial to do so. Are warning letters good or bad?
Such letters could be good because sometimes businesses don’t know they violated federal law. Warning letters could be helpful to a business to become legally compliant. Also, a warning letter gives the business an opportunity negotiate with the federal agency and show legal due diligence and good faith. Finally, warning letters are not expensive lawsuits.
Obviously, warning letters are bad because the business violated federal law.
Failing to reply to warning letters could lead to extensive and expensive litigation, which could have severe consequences on the business.
Best business practice is to NEVER ignore a warning letter from any federal agency. Also, in order to properly and timely reply, it is in the business best interest to contact the right attorney to represent the business. However, the best business practice is to be legally compliant to avoid receiving warning letters. Any questions, feel free to contact me.