A business owner has to deal with a variety of obstacle. Issues such as quality assurance, production, inventory and payroll usually warrant the most attention. However, taking care of your employees and making sure their employment rights are observed deserves attention, too. Not handling your employee’s needs can result in unnecessary lawsuits.
Employees are people. People can be very unpredictable, making it difficult to prepare for every scenario you may encounter. However, human resource studies indicate that more than four out of five legal actions taken by employees against employers occur in one of three categories: Discrimination, wrongful termination and sexual harassment.
Discrimination
Race, color, creed, national origin, marital status, religion, sexual preference, age, physical
and/or mental disabilities, or pregnancy are all areas in which employees are protected from
discrimination under federal law.
Federal laws such as the Title VII of the Civil Rights Law of 1964, the Age Discrimination in Employment Act of 1967, the Equal Pay Act, the Rehabilitation Act of 1973, the Pregnancy Discrimination Act of 1978, the Americans with Disabilities Act of 1990, the older Workers Benefit Protection Act of 1990, the Civil Rights Act of 1991, and the Family Medical Leave Act of 1993 have set precedence for employees filing discrimination claims with the Equal Employment Opportunity Commission.
Although these acts are often considered standard business knowledge, in 1998 the Equal Employment Opportunity Commission heard more than 101,000 cases and awarded more than $169 million to employees who were discriminated against. Even in settlement situations, considered to be nuisance cases, costs of $30,000 or more are regularly awarded in discrimination cases.
Wrongful Termination
Wrongful termination is one of the most common grounds for employee lawsuits. Many employers
operate under the premise that they have the ability to fire an employee at any time without
justification or notice. The courts, however, have not always concurred. For example, if at
any time during the time of hire an employer makes statements implying a promise of permanent
employment status, the courts may consider this as an implied contract prohibiting the employer
from firing at will. The best advice is to consult your attorney for information about how you
can inoculate your business from wrongful termination lawsuits.
Sexual Harassment
These lawsuits fall into two categories: "Quid Pro Quo harassment" (where sexual contact
is made a condition of employment) and "hostile environment harassment" (where verbal, visual
or physical conduct of fellow employees creates an offensive work environment). Both cost
businesses millions of dollars in punitive damages. If an individual is offended by anything
of asexual nature — a picture on the wall or a conversation they overheard around the water
cooler — they may have grounds for a sexual harassment lawsuit.
The employer does not have to be directly involved with the harassment. In fact, most employers are not even aware the harassment is taking place. However, the employer is liable and needs to provide a written policy against sexual harassment and educate employees. In addition, the employer is responsible for investigating all complaints and taking necessary actions to reprimand offenders.
