EMPLOYEE LAWSUITS SOARING
By John Ingrisano on May 28, 2009 in business management
Some law firms are calling it a “perfect storm.” Between the weak economy, which has businesses looking for ways to cut corners (and often turning to layoffs as a solution) and a pro-employee administration in Washington that is making it harder and harder for businesses to defend themselves in court, lawsuits against employers are at the highest level on record.
When it comes to liability management, “we are seeing more changes in the last several years than in at least the last 25,” explained Tom Hams, Managing Director and National EPL Practice Leader, Aon Financial Services Group, in a management liability seminar in Green Bay, Wisconsin, recently. “Worst of all, it’s across the board. We’re seeing suits involving employment practices, harassment, wrongful termination.”
One growing area involves suits over wrongful termination. If you’re considering layoffs, don’t rush in and start making cuts. “A reduction in workforce is one of the riskiest things a business can do,” reports John Haase, Managing Partner, Labor & Employment Litigation Leader for the Wisconsin-based law firm of Godfrey & Kahn. “First consider alternatives. Surveys show that employees would generally prefer to take a wage cut or have hours reduced than take a reduction in the workforce. Even temporary layoffs are preferred.”
That’s just one area. In 2008, workplace discrimination charges soared to their highest levels in history, up 15% over 2007, according to figures released by the EEOC (March 2009). While racial discrimination cases increased 11%, retaliation charges (often involving accusations that a layoff was in retaliation for a rules violation or personal dispute) jumped 45%.
The bottom line: These are litigious times. Small company or large, use caution when considering layoffs, as well as pretty much any decision involving employees. And when in doubt, check with a good labor relations attorney.
So, work hard. Make money. And be careful. — JR Ingrisano
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When it comes to liability management, “we are seeing more changes in the last several years than in at least the last 25,” explained Tom Hams, Managing Director and National EPL Practice Leader, Aon Financial Services Group, in a management liability seminar in Green Bay, Wisconsin, recently. “Worst of all, it’s across the board. We’re seeing suits involving employment practices, harassment, wrongful termination.”
One growing area involves suits over wrongful termination. If you’re considering layoffs, don’t rush in and start making cuts. “A reduction in workforce is one of the riskiest things a business can do,” reports John Haase, Managing Partner, Labor & Employment Litigation Leader for the Wisconsin-based law firm of Godfrey & Kahn. “First consider alternatives. Surveys show that employees would generally prefer to take a wage cut or have hours reduced than take a reduction in the workforce. Even temporary layoffs are preferred.”
That’s just one area. In 2008, workplace discrimination charges soared to their highest levels in history, up 15% over 2007, according to figures released by the EEOC (March 2009). While racial discrimination cases increased 11%, retaliation charges (often involving accusations that a layoff was in retaliation for a rules violation or personal dispute) jumped 45%.
The bottom line: These are litigious times. Small company or large, use caution when considering layoffs, as well as pretty much any decision involving employees. And when in doubt, check with a good labor relations attorney.
So, work hard. Make money. And be careful. — JR Ingrisano
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