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                                Employment Law Tips




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2002-10 © Alan J. Thayer, Jr.
   All rights reserved.
Presented
as an educational service
           by
Oregon Business Attorney

Alan Thayer
Could you survive a costly employee lawsuit?
53                     %
of businesses have been sued by employees



                        - Jackson Lewis/SHRM Survey (2003)
Right Now



150,000
U.S. businesses are being sued by their employees

                                    - USA Today (2002)
450
Employee lawsuits filed each day



                     - Nations Business (Feb 1, 1998)
Employees win




       63                %
                of all employment cases

                            - Jury Verdict Research
Employees win




       72                %
        of all race discrimination cases

                            - Jury Verdict Research
Employees win




       74                %
         of all sex discrimination cases

                            - Jury Verdict Research
$553,761




Average employment case verdict
                         - Jury Verdict Research
$671,668




Average whistle blower verdict
                         - Jury Verdict Research
$839,212




Average verdict against manufacturers
                             - Jury Verdict Research
Employee lawsuits are the greatest
                    litigation risk.




              - U.S. Corporate Litigation Trends Survey
                     Fulbright & Jaworski L.L.P. 2004
59   Employment Law Tips
1   Assume a current, former or potential
          employee will sue you.
2   You can not predict which employee
               will sue you.
Job Descriptions
Always provide
3   applicants &
    candidates for
    advancement
    with a written
    job description.
Use your job
4   description
    when an injured
    worker seeks to
    return to work
    too soon.
Hiring
5   Always, always, always have applicants
      SIGN your form of employment
                 application.
6   Have applicants certify the information
          they provide is accurate.
7   Have applicants promise to follow all
    of your rules, regulations & policies.
Have applicants acknowledge that you
8      may not have any job openings.
9   Have applicants agree that you may
      investigate their backgrounds.
10   Have applicants authorize schools &
       prior employers to talk to you.
11   Have applicants acknowledge you are
             an at-will employer.
12   Have applicants authorize deductions
          from their final paychecks.
13   Have applicants acknowledge that their
      application is valid for only 30 days.
14   Have applicants agree that any disputes
        will be resolved by arbitration.
15   Return all unsolicited resumes.
16   Use separate release forms for each
     reference, school & prior employer.
New Hire Documents
17   Have new hires sign dispute resolution
                 agreements.
18   Have new hires sign noncompetition
       agreements when appropriate.
19   Have new hires sign separate
      confidentiality agreements.
20   Have new hires sign separate
     nonsolicitation agreements.
21   Save your employees’ I-9 forms in a
              separate I-9 file.
22   Safeguard key documents signed by
     employees.
Harassment
23    Have EVERY employee sign an
     UP-TO-DATE harassment policy.
24   Remind your employees of your
       harassment policy regularly.
Employee Handbooks
25   Use an employee
     handbook to
     communicate your
     expectations to your
     employees & to
     document your policies.
26   Draft a customized
     handbook - one
     size does not fit all
     employers.
27   Do not limit your ability
     to deal with employee
     problems on a case-by-
     case basis.
28   Update your handbook
     EVERY YEAR.
29   DO NOT copy the
     handbook of another
     employer.
30   Review your handbook
     before taking disciplinary
     action against an
     employee.
Make it easy for
31   employees to express
     complaints & concerns.
32   Make it easy to request
     accommodations for
     disabilities & religious
     observances.
Performance Evaluations
33     DO NOT promise to give
     performance evaluations on any
           particular schedule.
Give honest, accurate & constructive
34   performance evaluations in writing.
35   Base evaluations on the employee’s job
          duties (use job description).
36   Objective evaluations minimize
      unfairness & manager bias.
37   State any corrective action required &
      consequences for failure to improve.
38   Have managers review all evaluations
     with another manager before giving
       the evaluation to the employee.
39   Give employees an opportunity to
      discuss the evaluation with their
                  manager.
40    Give employees an opportunity to
     note any comments on the evaluation
                before signing.
41     Periodically review evaluations to
     ensure they are consistently applied by
                 each manager.
42   Counsel any managers whose reviews
         appear to be inconsistent.
Employee Discipline
43   Your warnings for misconduct should
          contain two vital elements.
1. Describe what the employee is
          doing wrong.
2. State the consequences if the
       behavior continues.
44   ALWAYS document a verbal warning in
      writing immediately after it is given.
45    Always deliver written warnings in
     person & document what was said in
     writing immediately after the meeting.
46    Conduct an impartial investigation of
     complaints against an employee before
         making a discipline decision.
47    Interview the accused employee, tell
     them of the complaint & allow them to
           tell their side of the story.
48   Allow employees (union or non-union)
     to have a representative present during
           their interview if requested.
49    Interview other witnesses that may
     have knowledge of events relating to
                the complaint.
50   Have all statements contradicting the
      employee documented in writing &
           signed by the witnesses.
51   Consider having legal counsel conduct
        the investigation & interviews.
52     If the investigation concludes that
     disciplinary action is required, review
      the employee’s disciplinary record.
Review the discipline imposed in
53    similar situations in the past.
54   Balance the seriousness of the conduct
      with the employee’s overall record to
      determine the appropriate discipline.
55      Document the results of your
     investigation & the reasons for any
             disciplinary actions.
Employee Termination
56   Avoid summary terminations - take
     time to investigate & document the
           reasons for termination.
57   DO NOT wait until Friday to
       terminate an employee.
58   Tell the truth about the termination.
59   Have terminated employees sign a
     written Severance Agreement releasing
     you from liability.
Employer Strategies



1 TakeCharge! Supervisor Guide

2 TakeCharge! Employment Forms

3 TakeCharge! Employee Handbook

4 Update Continually
Legal compliance can become a competitive advantage for you.
Oregon Business Attorney

Alan Thayer

welcomes your questions
    and comments

    541-345-2325 • www.thinkILG.com • alan@thinkILG.com

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59 Employment Law Tips

  • 1. 59 Employment Law Tips 59 in Minutes 2002-10 © Alan J. Thayer, Jr. All rights reserved.
  • 4.
  • 5. Could you survive a costly employee lawsuit?
  • 6. 53 % of businesses have been sued by employees - Jackson Lewis/SHRM Survey (2003)
  • 7. Right Now 150,000 U.S. businesses are being sued by their employees - USA Today (2002)
  • 8. 450 Employee lawsuits filed each day - Nations Business (Feb 1, 1998)
  • 9. Employees win 63 % of all employment cases - Jury Verdict Research
  • 10. Employees win 72 % of all race discrimination cases - Jury Verdict Research
  • 11. Employees win 74 % of all sex discrimination cases - Jury Verdict Research
  • 12. $553,761 Average employment case verdict - Jury Verdict Research
  • 13. $671,668 Average whistle blower verdict - Jury Verdict Research
  • 14. $839,212 Average verdict against manufacturers - Jury Verdict Research
  • 15. Employee lawsuits are the greatest litigation risk. - U.S. Corporate Litigation Trends Survey Fulbright & Jaworski L.L.P. 2004
  • 16. 59 Employment Law Tips
  • 17. 1 Assume a current, former or potential employee will sue you.
  • 18. 2 You can not predict which employee will sue you.
  • 20. Always provide 3 applicants & candidates for advancement with a written job description.
  • 21. Use your job 4 description when an injured worker seeks to return to work too soon.
  • 23. 5 Always, always, always have applicants SIGN your form of employment application.
  • 24. 6 Have applicants certify the information they provide is accurate.
  • 25. 7 Have applicants promise to follow all of your rules, regulations & policies.
  • 26. Have applicants acknowledge that you 8 may not have any job openings.
  • 27. 9 Have applicants agree that you may investigate their backgrounds.
  • 28. 10 Have applicants authorize schools & prior employers to talk to you.
  • 29. 11 Have applicants acknowledge you are an at-will employer.
  • 30. 12 Have applicants authorize deductions from their final paychecks.
  • 31. 13 Have applicants acknowledge that their application is valid for only 30 days.
  • 32. 14 Have applicants agree that any disputes will be resolved by arbitration.
  • 33. 15 Return all unsolicited resumes.
  • 34. 16 Use separate release forms for each reference, school & prior employer.
  • 36. 17 Have new hires sign dispute resolution agreements.
  • 37. 18 Have new hires sign noncompetition agreements when appropriate.
  • 38. 19 Have new hires sign separate confidentiality agreements.
  • 39. 20 Have new hires sign separate nonsolicitation agreements.
  • 40. 21 Save your employees’ I-9 forms in a separate I-9 file.
  • 41. 22 Safeguard key documents signed by employees.
  • 43. 23 Have EVERY employee sign an UP-TO-DATE harassment policy.
  • 44. 24 Remind your employees of your harassment policy regularly.
  • 46. 25 Use an employee handbook to communicate your expectations to your employees & to document your policies.
  • 47. 26 Draft a customized handbook - one size does not fit all employers.
  • 48. 27 Do not limit your ability to deal with employee problems on a case-by- case basis.
  • 49. 28 Update your handbook EVERY YEAR.
  • 50. 29 DO NOT copy the handbook of another employer.
  • 51. 30 Review your handbook before taking disciplinary action against an employee.
  • 52. Make it easy for 31 employees to express complaints & concerns.
  • 53. 32 Make it easy to request accommodations for disabilities & religious observances.
  • 55. 33 DO NOT promise to give performance evaluations on any particular schedule.
  • 56. Give honest, accurate & constructive 34 performance evaluations in writing.
  • 57. 35 Base evaluations on the employee’s job duties (use job description).
  • 58. 36 Objective evaluations minimize unfairness & manager bias.
  • 59. 37 State any corrective action required & consequences for failure to improve.
  • 60. 38 Have managers review all evaluations with another manager before giving the evaluation to the employee.
  • 61. 39 Give employees an opportunity to discuss the evaluation with their manager.
  • 62. 40 Give employees an opportunity to note any comments on the evaluation before signing.
  • 63. 41 Periodically review evaluations to ensure they are consistently applied by each manager.
  • 64. 42 Counsel any managers whose reviews appear to be inconsistent.
  • 66. 43 Your warnings for misconduct should contain two vital elements.
  • 67. 1. Describe what the employee is doing wrong.
  • 68. 2. State the consequences if the behavior continues.
  • 69. 44 ALWAYS document a verbal warning in writing immediately after it is given.
  • 70. 45 Always deliver written warnings in person & document what was said in writing immediately after the meeting.
  • 71. 46 Conduct an impartial investigation of complaints against an employee before making a discipline decision.
  • 72. 47 Interview the accused employee, tell them of the complaint & allow them to tell their side of the story.
  • 73. 48 Allow employees (union or non-union) to have a representative present during their interview if requested.
  • 74. 49 Interview other witnesses that may have knowledge of events relating to the complaint.
  • 75. 50 Have all statements contradicting the employee documented in writing & signed by the witnesses.
  • 76. 51 Consider having legal counsel conduct the investigation & interviews.
  • 77. 52 If the investigation concludes that disciplinary action is required, review the employee’s disciplinary record.
  • 78. Review the discipline imposed in 53 similar situations in the past.
  • 79. 54 Balance the seriousness of the conduct with the employee’s overall record to determine the appropriate discipline.
  • 80. 55 Document the results of your investigation & the reasons for any disciplinary actions.
  • 82. 56 Avoid summary terminations - take time to investigate & document the reasons for termination.
  • 83. 57 DO NOT wait until Friday to terminate an employee.
  • 84. 58 Tell the truth about the termination.
  • 85. 59 Have terminated employees sign a written Severance Agreement releasing you from liability.
  • 86. Employer Strategies 1 TakeCharge! Supervisor Guide 2 TakeCharge! Employment Forms 3 TakeCharge! Employee Handbook 4 Update Continually
  • 87. Legal compliance can become a competitive advantage for you.
  • 88. Oregon Business Attorney Alan Thayer welcomes your questions and comments 541-345-2325 • www.thinkILG.com • alan@thinkILG.com