When it comes to protecting your company, there are certain things that need to be considered. Most executives think that they only need to worry about themselves in order to protect the company from a legal standpoint. Although that can help, bad things can still happen if you have such a limited view.
A better way to keep the legal aspects in mind is to not only protect the company, but the employees that work for you as well. If they are protected and feel secure and as though they know your company cares about them, they will be much less likely to bring up legal issues with you in the future. There will also be less chance of legal problems at all between employer and employee this way.