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Avoid Frivolous Lawsuits

06.16.10

David Ricker, Former CEO of Broadlane, asks:
What is the best way to minimize frivolous employment lawsuits?
Every time a company fires an employee, the company faces a possible employment lawsuit. But a company can minimize its exposure to frivolous employment lawsuits—those that have little legal merit—by following these suggestions.

First and foremost, an employer should always treat its employees fairly and with respect. This sounds simple, but employees who feel mistreated or humiliated are far more likely to sue.

Second, an employer should communicate clearly and frequently with its employees. An employer should concisely explain its policies in an employee handbook and should train its employees on all policies and procedures. Managers should convey performance expectations, give constructive feedback year-round, and evaluate performance and discipline issues in honest, specific, and objective terms. Likewise, an employer should listen to its employees and immediately investigate (and remedy) complaints of discrimination or harassment.

In the same way, an employer should handle terminations with care. A termination decision should be based upon legitimate business reasons (such as poor performance, discipline problems or a layoff), supported by sufficient documentation, and conducted in a way that enables the employee to leave with dignity. While frequent communication can prevent a termination from surprising an employee, an employer should also explain its reason for the termination at the termination meeting; if an employee is not told a reason, the employee may wrongly believe that no good reason exists, leading the employee to conclude that an illegal reason motivated the employer’s decision. An employer should pay the employee any wages, vacation pay or other owed amounts right away, and an employer should not stop the employee from receiving unemployment benefits. Finally, an employer’s best tactic for avoiding frivolous lawsuits may be to offer departing employees small severance packages. Often, an employee will accept an amount equal to a few weeks’ pay in exchange for an agreement not to sue.

Unfortunately, no company is bulletproof. For more information on protecting your company from employment lawsuits, please contact Dallas employment law attorney Keith Clouse at Clouse Dunn Khoshbin LLP at .(JavaScript must be enabled to view this email address).

Keith Clouse
Partner
Clouse Dunn Khoshbin, LLP
LABOR AND EMPLOYMENT LAW


posted by Rachel Meador on 06.16.10 • comments (0) • Labor and Employment Law