David Muhlbaum explains how employers can avoid finding themselves on the wrong side of an employee lawsuit.
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Employer tips to Avoid Employee Lawsuit
Hi! I’m David Muhlbaum, Web Editor for the Kiplinger Business Resource Center. Employers should brace themselves for a big increase in employment discrimination law suits spurred by recent supreme court decisions, new federal laws and massive layoffs in many industries. Charges of retaliation are seeing explosive growth. Reasons for the surge include rulings had expanded protections for employees and made it easier for them to claim they suffer what’s legally called Adverse Employment Action. Eye popping awards from juries help too.
Compensation discrimination claims are sure to go up too because of the Lilly Ledbetter Fair Pay Act which broadens the definition to include not just decisions about pay but also those that might affect compensation such as training and promotions. And a new law amending the Americans with disabilities act expand workplace protections could mean more disability claims.
There are way though to lessen your chances of ending up on the wrong side of an expensive law suit. For starters, keep good records. Train supervisors on proper procedures. Be careful with layoffs making sure there’s no disproportionate impact on particular groups. Good communication in general serves as help. Employer should explain how decisions are made and why so workers don’t feel like they’re getting the shaft.
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