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August
2007
Angry Employees Can Cost You
In 2005, charges from the U.S. Equal Opportunity
Employment Commission (EOEC) led U.S. businesses to pay
$272 million in fines and lawsuits stemming from disgruntled
employees.
As payouts from these suits continue to grow
(the $272 million figure is twice that of 1995), employers
are seeking methods to protect themselves from angry employees.
The first step is knowing the laws that govern employment
practices in your area. In addition, employee lawsuit specialists
recommend the following:
- Create an employee handbook.
This handbook will ensure that employees are treated consistently.
- Beware of employment contracts. For example,
if a contract guarantees employment for a set time, it
will be more difficult to relieve the employee before that
time is expired.
- Document, document, document. Encouraging
management to keep accurate records of employee meetings
and evaluations is a must if such records are to be called
upon in the future.
- Be wary of a transfer. An employee
may resist or reject a transfer to a different area of
your business that is designed to alleviate a problem.
Worse yet, he or she may claim unfair practices by you.
- Obtain an
employment practices liability insurance (EPLI) policy.
This type policy may offer valuable defense for employment-related
issues.
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