Employees of podiatric medical practices across the nation are suing their employers. Claims include wrongful discharge, discrimination, and even assault and battery. Practices are spending more time and money in defense as the number of lawsuits continues to rise.
The stakes are higher than you might think. No employer, large or small, is immune from the provisions of employment law. In many states, local discrimination statutes apply to employers with as few as one employee. You can avoid legal liability by taking some preventive measures.
Prevention begins with properly screening employees. Although it may be tempting in this era of low unemployment rates to hire employees who are marginally qualified, that is not advisable. In many states, however, screening is not as easy: You have greater risks because you are prevented from asking job candidates about their mental health, arrest or conviction records, use of prescription drugs, credit history, or disabilities that are not directly related to the applicant's ability to perform the job.
When an employee is hired, it is essential for you to specify the parameters of employment in an employee handbook. A handbook in which your policies are made known is often your best defense. In court, an employee can use the absence of a handbook to substantiate discrimination claims.
An employment handbook should include information or absenteeism policies, sexual harassment, the Americans with Disabilities Act, and other federal and state discrimination statutes. Also, it should include policies pertaining to vacations, holidays, sick leave, performance appraisals, and substance abuse.
Writing a handbook is not as easy as it seems. It must be written carefully to avoid altering the terms of the employment relationship. Provisions in a handbook can be used against you. You can be held legally responsible for the contents of the handbook and for breaching the terms of the handbook. Therefore, it is unwise to copy another employer's handbook or place provisions in a handbook simply because the terms seem attractive to job candidates or current employees. Only policies that you believe in and intend to enforce should be included.
If you have a handbook, be sure that each of your employees has a copy. It is best to give a book to every new employee and have the employee sign a form acknowledging its receipt. Often, disgruntled employees claim they were unaware of office policy regarding a host of employment problems. A signed acknowledgment form is your best counterclaim. You also may want employees to sign forms when receiving office property. Their signature can help you collect property when an employee leaves or enable you to make deductions from final paychecks.
Updating a handbook should be an annual event, because employment laws change. "Canned" or prefabricated employee handbooks found on the Internet are becoming popular with employers, but are not recommended. Each practice has its own needs, and every state has its own employment laws that affect the content of a handbook.
Besides using handbooks, you can protect your practice against employment disputes by posting notices in accordance with all regulations. The failure to post notices -- for discrimination policy, for example - can result in fines and bolster employee claims against you.
Finally, you need to protect your practice when you end an employment relationship. No one finds this action easy, but it is inevitable that it will occur. Severance agreements are an extremely valuable tool for employers. An agreement with the employee helps tie up loose ends and serves to prevent future litigation. The most important aspect of a good severance agreement is specificity. The more specific you are in drafting the agreement, the less likely it is that an employee will be able to bring subsequent lawsuits in connection with their termination. Be sure that all employee concerns are addressed in the agreement, in order to avoid future conflict.
With appropriate foresight and good planning, you can protect your practice from employment lawsuits. Consult a local human relations officer or attorney when you formulate or implement your office's employment policies.