Think Employee Lawsuits Can’t Happen to You?


Think again.

Discrimination in hiring can be costly when employees sue.When dealing with hiring issues, “I didn’t know” and “I didn’t mean to do that” are excuses that don’t get too much sympathy in court. Discrimination in hiring and firing are serious issues that can be very costly for your business. When cases go to trial awards can be in the hundreds of thousands of dollars because punitive awards are often tacked onto actual damage amounts. Fortunately, most cases are settled out of court somewhere in the middle of what a claimant asks for and what and employer believes is fair. The real winners are, you guessed it, the lawyers.

 So…what kinds of discrimination are common?

 Discrimination comes in many forms.
  • Age discrimination laws are designed to protect workers over the age of 40.
  • Race and ethnicity discrimination under Title VII of the Civil Rights Act of 1964 prohibits discrimination when it comes to any aspect of employment, including hiring, firing, pay, job assignments, promotions, layoff, training, fringe benefits, and any other term or condition of employment.
  • The Americans with Disabilities Act requires reasonable accommodation in the workplace of disabled workers if the disability is known to the employer.
  • Several States have passed legislation that prohibits practice of excluding unemployed individuals in advertisements for job vacancies.
  • According to the Equal Employment Opportunity Commission (EEOC), A blanket refusal to hire workers based on criminal records or credit problems can be illegal if it has a undue impact on racial minorities,

 OK….How do I protect my company from discrimination actions?

Avoiding lawsuits, penalties and fines in employment related matters requires a framework of compliance measures put in place at your business and constant monitoring of your company’s compliance. That is one of the key benefits provided by human resource (HR) professionals.

You can employee in-house HR professionals or you can outsource that function. Professional Employer Organizations (PEOs) provide the HR functions on an “as needed” basis. PEOs can help establish the proper framework including employee handbooks, sensitivity training as well as procedures to deal with discrimination issues as they may develop.

The Society for Human Resource Management (SHRM) is an excellent resource for HR professionals to stay abreast of the laws and regulations surrounding the employer/employee relationship. They also have HR certification programs that result in Professional Human Resource (PHR) and Senior Professional Human Resource (SPHR) certificates.

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