EMPLOYMENT-RELATED
LAWSUITS AGAINST
ADMINISTRATORS AND LAW FIRMS
THE MOST FREQUENTLY-ENCOUNTERED MISTAKES
by Mike Casey, Esquire
Muller, Mintz, Kornreich, Caldwell,
Casey, Crosland & Bramnick, P.A.
Employment related lawsuits have multiplied over the last few years
to the point that such claims comprise the highest percentage increases in claims filed in
the federal and state courts nationwide. Multi-million dollar verdicts are not unusual;
they have become the norm. Liability can be imposed not only upon the organization (law
firm or corporation), but in many instances also upon individuals such as attorneys,
managers and administrators. Based upon our firms experience in having defended
thousands of employment-related claims and lawsuits, I have compiled a list of errors or
omissions that, singly or in concert, frequently lead to lawsuits against organizations
and individual managers.
Mistakes In The Interviewing/Hiring Process. The
interviewing/hiring process is very important; yet, many organizations do not properly
prepare for it. Hiring the "wrong" person for a job can result in a lot of
problems such as wasted time, lost productivity, administrative expense and so forth. That
is not good. However, mistakes in the interviewing/hiring process also can result in
litigation against the firm and the administrator. Here are some of the deficiencies that
frequently result in lawsuits against firms and administrators.
 | Failing to educate and to train the individuals who are involved in
the hiring process about laws applicable to that process, about questions that should not
be asked of applicants, and particularly about issues involving the Americans With
Disabilities Act and similar state and local laws. Statements made and questions asked in
the hiring process can be used to help establish liability under a host of
anti-discrimination laws. Misstatements also can create contracts of employment which
operate to nullify Floridas "At Will" employment rule.
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 | Failing to adequately and thoroughly investigate an applicants
background. That can amount to negligent hiring, and can subject the firm and the
administrator to personal liability if, for example, the applicant/employee later engages
in violence (e.g., assault and battery, sexual assault) in or about the workplace. Florida
law provides some measure of protection for negligent hiring if you do it right. [See
Fla. Stat. Ann. § 768.096 (Where an employee injures a third party, the employer is
presumed not to have been negligent in hiring such employee if, before hiring that
employee, the employer conducted a "background investigation" of the prospective
employee and the investigation did not reveal any information that reasonably demonstrated
the unsuitability of the prospective employee for the particular work to be performed for
the employer or for the employment in general)].
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 | Failing to comply with the requirements of the Fair Credit Reporting
Act. This law has been a "sleeper." The Plaintiffs Bar is just beginning
to realize the opportunities presented by the many employers who are not complying with
the FCRA.
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 | Failing to have accurate, written job descriptions. This is
particularly important with respect to claims under the Americans With Disabilities Act.
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 | Failing to have "At Will" employment language in the
application documents and in the firms employee handbook. If you dont have
that language, it is more difficult to defeat a claim for breach of an oral contract of
employment. Also, the employee handbook should state that the handbook constitutes
guidelines only; and, that the handbook does not create a contract as to the benefits or
policies contained in it.
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 | Failing to have appropriate documentation under the Immigration
Reform and Control Act (IRCA).
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Mistakes Concerning Wage-Hour Laws.
 | Failing to comply with the Fair Labor Standards Act. Secretaries
as secretaries are not "exempt" no matter how much they are paid. The same holds
true, generally, for paralegals. Many employees classified as "administrative
assistants" usually are not really exempt from the requirements of the Fair Labor
Standards Act.
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Deficient Policies. Written policies are important. They not
only let employees know what the firms policies are, but also they can be
effectively utilized as defensive measures in litigation. Here are some of the problem
areas in that regard.
 | Failing to have and to publish a written, effective policy
prohibiting harassment, including sex harassment; failing to train managerial and
supervisory individuals about harassment, including sex harassment. It is absolutely
essential to have an effective, anti-harassment policy. Please note that I have referred
to an anti-harassment policy which includes sex harassment. The anti-harassment policy
must address all forms of harassment (e.g., racial harassment, national origin harassment,
religious harassment and so forth). Many organizations have only a sex harassment policy.
That is dangerous. For example, if you have only a sex harassment policy, a plaintiff in a
race harassment case will argue to the jury that you think sex harassment is important
(because you have a policy on that point) but that racial harassment apparently is
unimportant to you (because the firms policies do not proscribe that form of
harassment).
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 | The biggest single problem causing, or involved in,
employment-related litigation is that many firms and organizations do not properly handle
and/or document performance and discipline. If an organization terminates an employee for
performance-related problems, the judge or jury expects the organizations records to
fully support the performance deficiencies. If the documentation is not there, you are
probably going to lose the case. Here are some of the common problems.
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 | Failing to have an effective performance evaluation system.
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 | Failing to train people in how to use the performance evaluation
system.
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 | Failing to be honest and candid in evaluating employees; and the
related problem of failing to clearly advise an employee of work performance deficiencies.
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 | Failing to see that employees are evaluated on job-related criteria,
as opposed to the usual tendency to rate personality rather than performance.
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 | Failing to see that evaluators avoid bias in the evaluation process.
There is a natural tendency for evaluators to give favorable ratings to someone like
themselves.
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 | Failing to see that disciplinary actions are properly documented.
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Mishandling The Termination. Obviously, the discipline-termination
process is very important. This is true as to all types of employment discrimination
cases, whether based on race, sex, religion, national origin or any other illegal factor.
In employment discrimination cases, the employer is on trial before the jury. In practice,
jurors are less concerned with discrimination issues than with fairness issues, as they
perceive fairness. (Remember, most jurors are employees, not managers.) In their
deliberations, they consider how they would have liked to have been treated by the
employer which is on trial. If they think you were unfair to the plaintiff/former
employee, you stand a good chance of losing the case, even though there may be no evidence
whatsoever of any form of illegal discrimination present in your decision making process.
Heres how most organizations and individuals get in trouble in that regard.
 | Failing to give the employee who is in trouble because of performance
deficiencies clear written notice of the performance problems, of needed improvements, and
failing to advise the employee of the consequences (e.g. termination) of his or her
failure to correct the deficiencies within a specified time frame. This is sometimes
referred to as the "last chance" letter. If a former employee sues you after you
have terminated him or her, such an employee may claim that you abruptly fired him or her
without giving any warning whatsoever as to any alleged performance problems. A jury will
not like that. Further, purely from a human resources standpoint, it is a good idea to
utilize such letters because, when confronted with such a letter, employees sometimes do
take the performance issue seriously, and do attempt to do better in their respective
jobs.
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 | Having decentralized decision-making with respect to disciplinary
matters. Decentralized decision-making with respect to discipline is particularly
dangerous in the field of employment discrimination litigation. In the law firm context,
decentralization usually means allowing attorneys (or managers, such as accounting or
information systems) make decisions as to discipline or termination. That can result in
inconsistent treatment of employees. That can result in a verdict for some form of illegal
discrimination. The classic definition of discrimination is treating like cases
differently. All proposed disciplinary actions should be reviewed at a central source.
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 | Failing to conduct the termination of an employee in a professional
and dignified fashion.
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 | Providing negative reference information about former employees. (The
more you say, the more you pay.) It is true that Florida law protects you and the law firm
to some extent for providing negative reference information about a former employee. [See
Fla. Stat. Ann. § 768.095 (An employer who discloses information about a former or
current employee to a prospective employer at the request of that employee is immune from
civil liability for such disclosure or its consequences unless the employee shows by clear
and convincing evidence that the disclosed information was knowingly false or violated the
employees civil rights)]. Therefore, if you do provide negative reference
information about a former employee, in all likelihood you and your firm will be declared
not guilty after two or three years of defamation litigation and tens of thousands of
dollars in legal fees.
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Mike Casey is a senior partner at Muller, Mintz, Kornreich, Caldwell,
Casey, Crosland & Bramnick, P.A. of Miami and Orlando. All members of the firm limit
their practice to labor and employment law, representing employers only. Mike is a past
chairman of the Florida Bar's Labor and Employment Law Section. He is also a Fellow of the
College of Labor and Employment Lawyers, an invitation-only organization associated with
the American Bar Association. |