HR: Manager Mistakes and Lawsuits
In recent years, the number of employee lawsuits has risen tremendously. Although many of these suits have no real legal basis and are provoked mainly by an employee’s anger from what they may consider to be unfair treatment—fighting these suits can still cost a company a great deal of time and money.
As many of these lawsuits can be traced backed to manager mistakes, below is a list of some of the most common manager mistakes that can expose a company to an increased likelihood of lawsuits and financial liability.
Inadequate Training- Managers should understand and follow company policies and procedures. Lack of training can cause managers to make improper or inconsistent decisions which contradict company policy.
Lack of Legal Knowledge- Managers should understand and comply with federal and state employment laws. Compliance with state/federal requirements is imperative in avoiding lawsuits.
Incomplete/Sloppy Documentation- Without written documentation of an employee’s history- employers have little evidence or proof of poor performance, insubordination or disregard of company policy. All communications should be documented and written as if they are going to be presented in court someday.
Ignoring Employee Complaints- To avoid lawsuits, managers should address employee’s problems and complaints as soon as they are brought to their attention. Ignoring complaints jeopardizes employee morale and a company’s standing in court.
Firing Employees Too Quickly- Managers who fire employees without advance notice are exposing a company to lawsuits. Acting without fair warning or first trying to improve a worker's performance invites resentment and may lead to litigation.