Three Key Reasons Why Former Employees Sue!

Over my twenty-eight years in this business I have seen employees sue for every reason that you can imagine. Throughout that time frame, several key areas have emerged as the most consistent. I have specifically omitted claims of discrimination because those are too easy and include too many frivolous allegations therefore I focused my attention on wrongful termination issues.

The number three reason, in my humble opinion, is not giving a reason for the termination. When you fail to do so, the former employee begins to imagine all sorts of things and never imagining, even for a moment, that they had done anything wrong! The person conducting the termination may have wanted to avoid an uncomfortable encounter and becomes vague as to the reasons for the discharge (or calls it a layoff because it is easier). You have to “ante up” and get into the game. Employees deserve to know the reason why they are out of a job and, in fact, some states require that the reason for the termination be in writing.

The second most common reason is when a manager terminates for bad performance and there are excellent performance reviews on file. How inconsistent is that!! Don’t be lazy, conduct the performance reviews in a manner consistent with the performance of the individual. Again, there are times when a manager takes a less confrontational route. Ante up people and let’s do what has to be done! If you need some education on “Conducting Effective Performance Evaluations” let us know. We offer that training.

The number one reason (drum roll please) is when the manager fails to follow established company policies, practices and procedures! The attorneys will tear a manager apart if they failed to follow their own rules. Employers in general need to have an employee handbook that is up to date and distributed (and signed for) to every employee and new hire. An annual review needs to be conducted to ensure that there weren’t any recent legislative or internal policy changes. The sad part is the termination, on its face may, have been proper. You simply cannot prove it, or, the cost of litigation (now that the door had been open to doubt) is more costly than a nuisance value settlement. Know and follow your own policies and when in doubt call us!

Well, there they are. Let’s avoid the minefield of litigation with at least avoiding the three key areas mentioned above.