Terry Corbell, The Biz Coach
By Terry Corbell
Business Consultant

Why Companies Fall into the Management Lawsuit Trap



News headlines continue to show there are a myriad of ways managers set themselves up for lawsuits. Small and many big companies are ripe for EEOC complaints.

The majority of lawsuits targeting management usually stem from a half dozen poor practices.

You’ll get into trouble using these six bad practices:

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1. Adherence to policies and procedures

Time and again, businesses are sued because managers fail to comply with company policy manuals.

Principals should always review policy manuals with managers, and get a signed receipt indicating that they understand policies.

Yes, any manager who strays from policy should be disciplined.

Only then, the managers should review the handbook with non-exempt staff.

2. Following discrimination and harassment policies

Periodically remind managers to be diligent to prevent discrimination and harassment in the workplace. Their employment status will be affected if they fail to adhere to policies, or if they to act professionally should policy violations occur.

3. Poor management of employee problems

Make certain managers know how to respond – not react in a knee-jerk fashion to employee problems. That means thinking about how to respond in all situations.

Typical worker problems include attendance, alcoholism drug use, and insubordination.

4. Retaliation or the appearance of being retaliatory

For example, courts frown on transfers if they look like a demotion. It looks suspicious if an employee suddenly receives an unsatisfactory performance appraisal or is not treated equally like other workers.

5. Terminations

Courts look to make certain terminations are handled well legally, and with civility and fairness. Typically, there are three key HR questions you must answer to the courts’ satisfaction when you terminate workers.

6. Family and Medical Leave Act (FMLA)

Typical problems result from FMLA misunderstandings over attendance policy, eligibility, notice requirements and worker reinstatement.

From the Coach’s Corner, for more strategies, here are related articles:

How to avoid EEOC Discrimination Suits — If you’re an out-of-work attorney, the good news is that the Equal Employment Opportunity Commission (EEOC) is on a hiring binge. The EEOC’s Web site also indicates the agency is recruiting for investigators to handle employment discrimination complaints. Of course, mediators, administrative support, managers, and IT personnel are also in demand. That means federal employment discrimination complaints are sky-high — a sad commentary for businesses and public agencies that are large enough for a human resources department.

21 Quick Tips to Avoid the Dark Side of Management — It’s true that not all complaints are valid. Many aren’t. Some originate from mere office politics. Managing employees is difficult. So the purpose here is not to indict the managers who are professional assiduous, empathetic, good motivators and make sure their workplace stays out of legal trouble. Here’s how to avoid HR troubles.

Human Resources: 12 Errors to Avoid in Evaluations — How should you properly evaluate employees? Make sure you are careful to avoid errors in evaluations. Naturally, you want to praise good performance and discourage bad. Commonly, there are 12 errors that managers make in performance evaluations.

Management — 4 Mindsets for Leadership in Performance Reviews — Are you nervous at the thought of giving employee-performance reviews? You’re not alone. Your employees aren’t exactly thrilled, either. Typically, employees aren’t convinced they can get valid feedback. If they’ve experienced poor managers, they likely dread the performance-review process or are skeptical of the outcome.

3 Often Asked Questions – Hiring and Laying Off Workers — Employers often ponder hiring and firing in this uncertain economy. So if you’re like many employers, coping with a tepid economic environment, you might need to re-think your approach to human resources, too. As you analyze your situation, wisdom and courage are your best friends in addressing three typical questions about guidelines in this uncertain economy.

Cutting Costs — 9 Best Practices to Avoid Making Reactionary Decisions — In chaotic times, it’s common for businesspeople to be fearful and reactionary when they feel they must cut expenses. But entrepreneurs need to be unemotional so that they make decisions that will bolster their objectives. They can take the emotion out of their decision-making — by eliminating stress factors – if their priorities are clearly defined with values. This is facilitated by documenting goals and priorities.

“Good management consists in showing average people how to do the work of superior people.”
-John D. Rockefeller

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

Seattle business consultant Terry Corbell provides high-performance management services and strategies.