Preventing Employee Lawsuits: 12 Ways to Stay Out of Court

Are you a manager? If so, you're responsible for directing, guiding and motivating your subordinates. And, as a human resources (HR) professional, my role is to help employers manage their most important assets: their employees. In my experiences, I've learned a lot about how employers can avoid lawsuits and promote a positive workplace.

With this in mind, here are the top 12 ways to stay out of court:

1. Treat employees fairly, and carefully adhere to company policies and procedures.

In order to do this, you must first familiarize yourself with the company policies. Unfortunately, I've encountered managers who have stored their company handbooks on shelves or have never even unwrapped them. The other extreme is when managers do know the policies, but fail to inform their employees about them.

2. Give accurate and objective performance appraisals.

This can only be done if you perform regular counseling/coaching sessions with your employees. If you do, annual performance appraisals are fairly easy to conduct.

3. Follow a progressive disciplinary practice.

Remember, it's best to provide adequate warning before you fire someone. Adhere to the following disciplinary process: Give verbal warning, then written warning, and finally probation. Too often, managers will simply tell me all of the mistakes the employee made. Then, I'll find out that most of the damaging evidence occurred over a year ago and was simply swept under the rug. And, most likely, the manager failed to follow the progressive disciplinary policy.

4. Be consistent in enforcing rules and documenting problems.

Again, this sounds simple - and it really is. As a manager, you must remain calm, seek out the facts, and consult with your boss and HR professionals. Once you've taken these actions, you're in a better position to make a decision. Bear in mind: Inconsistent policy enforcement is a prosecuting attorney's field day. Plus, it makes management look inept.

5. Record performance-related problems accurately and objectively.

Managers often believe that after coaching an employee, the problem will go away. However, the issue will likely rise again and need to be dealt with it. Finally, you're at wits end and want to take drastic action - maybe termination - but have no tangible evidence against the employee. Don't let this scenario happen to you. Take the time to build a file. If the problem disappears, so can your file.

6. Keep personal matters confidential.

Obviously, it's uncomfortable when another person learns about your background, salary, home address, age, previous work problems, performance-appraisal results, etc. Remember: Nobody likes to have their personal information divulged.

7. Stop rumors from spreading.

I've seen organizations with excellent employee communication systems and I've witnessed extremely inept workplaces. In both cases, rumors inevitably began to spread. However, in the competent organizations, the management stepped it to correct and kill them. But, when rumors spread throughout the incompetent organizations, they were extremely destructive.

8. Make employees feel comfortable.

Obviously, nobody likes to feel uncomfortable at work. And, it's the management's responsibility to set the tone of tolerance and respect. However, that doesn't mean that the office should be free of conflict. But, it's important for coworkers to argue respectfully and refuse to succumb to the "winner-takes-all" mentality.

9. Don't retaliate.

Employees must feel free to register complaints and concerns. And, good managers should deal with problems as they arise. After all, if problems and concerns are left to fester, they will only grow in intensity. Consider the old adage of building a mountain out of a molehill.

10. Distribute and enforce written policies.

Cultivate an environment where employees' rights are respected. Ensure that all employees understand what is expected of them and what they can expect from their managers.

11. Maintain regular contact with employees out on leave.

For instance, make sure employees out on leave are receiving proper insurance coverage. Show all employees that management personally cares about them. Bear in mind: The number-one reason employees run to lawyers is because no one from their company follows up with them. It then becomes a situation where employees want to protect themselves against the "big, bad company."

12. Beware that promises (oral or written) may create binding contracts.

People generally think that written contracts are more meaningful than verbal agreements. However, there are hundreds of court cases that have dealt with oral contracts. And, you know what the most unfortunate response is? "I didn't mean to say that."

As a seasoned HR professional, I've witnessed what happens when people fail to adhere to these rules. Not only does violating these policies get companies into hot water, it also changes their focus from doing their jobs to building unnecessary protective barriers. Plus, win or lose, companies spend lots of money defending themselves.

On the other hand, if you carefully follow these 12 rules, you will promote and establish a satisfied and productive workplace.

Diane Miller, Chuck Muzzy and Rick Sullivan are with Human Capital Strategies. Together, they have more than 80 years of industry experience. For more information, please check out www.human-capital-strategies.net. Their procedure on any assignment is to first get to know the business, then the issue, and finally apply practical solutions. You can reach Chuck at 678-910-8714 or e-mail him at: cmuzzy@human-capital-strategies.net.