Top Ten Ways to Avoid Lawsuits

Wayne N. Outten, a principal with Outten & Golden LLP of New York City (Employee's Attorney), recommends his top 10 ways for managers to avoid employee lawsuits:

  1. Listen to your employees. They may have legitimate complaints or good ideas. Employees will value the opportunity to express themselves and to be taken seriously. This will reduce the likelihood of future problems, and employees will feel more invested with their employers in a common enterprise.

  2. Talk to your employees. To the extent possible, keep employees informed of things that affect their jobs. Be clear and specific in telling employees what is expected of them, especially when a material change occurs (e.g., new standards or a new supervisor).

  3. Evaluate employee performance regularly and candidly. Provide constructive and meaningful feedback. Provide positive feedback openly and generously. Provide negative feedback privately and discreetly.

  4. Identify problems and resolve disputes as quickly and fairly as possible. Problems that are ignored have a way of ripening into disputes, and disputes can ripen into serious disruptions and costly litigation.

  5. Be consistent and objective in your treatment of employees. Avoid playing favorites. Evaluate and reward employees based on performance, not personality and politics.

  6. Recognize that your company makes mistakes. Your policies and practices may be imperfect, and your managers and supervisors will make mistakes. When this happens, deal fairly with the past consequences, and try to fix the problem for the future.

  7. Respect your employees' private lives. Recognize that employees have private lives that matter to them. Don't intrude more than is welcome. Accommodate their reasonable needs and interests, including their personal family obligations; and be flexible to the extent possible, consistent with legitimate business considerations.

  8. Be fair and reasonable in all your dealings with employees. Follow the golden rule: Treat every employee the way you want to be treated, that is, fairly. Treat every employee so as to bring out the best that person has to offer. Respect employee differences, such as race, ethnicity, background, and lifestyle.

  9. Consider alternative dispute resolution techniques. When your best efforts fail to avert or resolve a dispute, consider using peer review, early neutral evaluation, mediation, and non-binding arbitration. Use of ADR procedures should always be truly voluntary, not crammed down on employees as a condition of initial or continued employment.

  10. Be nice to plaintiffs' attorneys. When you get a telephone call or letter from a lawyer representing a current or former employee, consider it an opportunity to engage in mutual problem solving. Consider meeting with the employee and his or her counsel to exchange views on what happened and how the situation might be remedied. Such discussions may avert litigation.

Best way to avoid trouble? Treat employees fairly and be sure that they perceive it as fair.

Note: before initiating either of the last two points (1 or 2), ensure that you have thoroughly discussed the approach with your lawyer.

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