Employer's Checklist to Avoid Employee Problems and Lawsuits

Instant Attorney Drafted
Employee Handbooks

Multi-State
Business-employment attorney Jay Eckhaus 

Member of SHRM,
Society for Human Resource Management

4 Things You Can Do Right Now to Avoid an Employee Lawsuit

• Treat the employee with respect.
• Find out what the problem is from the employee's point-of-view.
• Does the Employee have suggestions on solving the actual or perceived issue?
• Do not acknowledge any fault or blame on the part of the company.
• Do not acknowledge any fault or blame on the part of any other employee.
• Do not accuse the employee of wrongful doing.
• Respect the employee’s privacy concerning the situation.
• Does your Employee Handbook have a policy that addresses the situation?
• Do not take any retaliatory action towards the employee.  Do not fire
  or punish the employee in any way.
   

Where employees report to one or more supervisors, get the answers to these questions:

• Are the Supervisors aware that there is an issue with an employee?
• If so, talk to the supervisors to obtain the facts about what they know.
• Do the Supervisors have a suggested solution?

For small businesses where the owner is the direct supervisor of the employee, you
may want to take a “step back” and try to objectively view the employee’s concern.
 

• Are other employees aware of the situation?
• Respect the employee’s privacy when seeking information from other employees.
• Speak confidentially and only to other employees with knowledge of the
  issue or incident.
• What are other employees saying about the situation?
   

• Is the employee’s file current and complete?
• Does the file contain the:

• Original Employment Application.
• Acknowledgment of Receipt of Employee Handbook.
• At Will Employment Contract.
• Awards or commendations received by employee
• Warning slips or documentation of performance issues.
• I-9 form
• Change of personal information such as name, address or phone number.

             Get the forms you need with the Deluxe or Premium Employee Handbook 

        A written report should be made of your investigation.

• Write on top of each page of the report, in bold lettering:

CONFIDENTIAL - PREPARED IN
ANTICIPATION OF LITIGATION

• Date the memorandum.
• Do not show this memorandum to anyone else other than your attorney. 
• Keep memorandum separate from the employee's personnel file. 
• File the memorandum in a secure private location that is available only to you.
   

• Take corrective measures immediately.
• Try to calm the situation with the goal of respecting the employee,
  resolving the issue and attempting to prevent a lawsuit.
   

Your Employee Handbook is a Legal Document that provides legal documentation which includes evidence of the attitudes, intentions and operations of your company.

Your Employee Handbook must demonstrate compliance, with your state as well as 
federal employment laws, which is essential in protecting your business.

Answer these questions about your Employee Handbook:

• Do your company policies comply with both your state and federal laws?
• Is your Employee Handbook up-to-date?   State and federal laws do change.
• Do your Employee Handbook policies change as laws change?
• Does your Employee Handbook protect Employment At Will?

ATTENTION  If you do not have an Employee Handbook, or if you answered “No” to any of the above questions, act immediately! 

You need this Employee Handbook that complies with your state laws and federal laws to help protect you NOW.

Your business may be at risk and not protected from an employee lawsuit. 
 

• See if you have Employee Practices Liability Insurance.
• Review the "Notification of Claims" Provision of the Policy.
• Determine if you should notify your insurance carrier of the situation.

Important:  Keep in mind that a failure to Inform your insurance carrier of a
potential claim may result in coverage being denied.
 

Should you receive a claim letter from an attorney or from the employee threatening
a lawsuit, you should consider the following course of action:

• Contact your attorney immediately.  Do not wait.
• Do not take any retaliatory action towards the employee. 
  Do not fire or punish the employee.
• Follow your attorney's advice.
   

This eBook is but a brief treatment on the subjects covered and are not designed to make an attorney out of you.

Our eBooks deal with general principles which may vary from state to state and may not cover or be applicable to your situation.

We encourage you to speak with your personal attorney should you be confronted with a legal problem. 

The author is not acting as your attorney as a result of you reading this eBook. Fingertip Manuals, its employees, members, officers and directors, and the author disclaim any liability to you, including actual, consequential, incidental or indirect damages (including damages for lost business opportunity or profits) concerning your use of the information and/or material covered by this eBook.

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