Managers and supervisors cause lawsuits simply by:

• Saying the wrong thing or asking the wrong questions
• Treating employees unfairly
• Humiliating, harassing, or retaliating, or
• Doing nothing when action should have been taken

Here are a few examples of managers' million-dollar mistakes:

Million-Dollar Words

At a New York City bank, an employee of Italian heritage was fired. The bank official told him that the bank wanted "to have a representative in external business dealings that was a true American." The official also accused the employee of "creating a Mafia shop."

The employee sued the bank for national origin discrimination. The jury, upon reflection, apparently didn't like the attitude of the bank manager, as it put the tab for the remarks at $2.6 million.

Million-Dollar Hands

A male attorney at a large law firm sexually harassed a new employee, making inappropriate and lewd remarks and engaging in behavior such as dropping candies into her blouse pocket.

She complained to management, but apparently was not satisfied with their response, so she sued.

It seems clear that the jury agreed with her, since they fined the law firm $6.9 million (later reduced to $3 million).

Million-Dollar Hostile Environment

At one of the country's biggest retailers, an employee complained that her supervisor made numerous sexual remarks to her and permitted other employees to pinch and kick her. Believing that her complaints were "falling on deaf ears," she sued.

The court didn't think much of her claim for lost wages, awarding $1.

And it didn't think that much of her claim for humiliation and mental anguish, awarding an additional $35,000.

But then they came to punitive damages, where they may add an amount that in their judgment is enough to punish the employer. That amount, they thought, should be a cool $50 million.

Which of Your Managers or Supervisors Is About to Make a Million- Dollar Mistake?

The editors of the HR Manager's Legal Reporter have identified 10 simple steps for avoiding lawsuits, compiled in a pocket guide called Stop Employee Lawsuits. [20303000] Here are the ten steps:

Step 1. Take Time with Hiring.

Many lawsuits are born during the hiring process. Some come immediately as a result of perceived discrimination. Others come later as a result of casual hiring practices that hire the wrong person for the job.

Step 2. Reject Troublemakers Upfront.

More often than not, says one attorney, when he checks into the backgrounds of employees who sued, he finds clear evidence of prior problems that would have been uncovered by routine checks.

Step 3. Share Expectations and Results.

It's important to let employees know what you expect, both in general (e.g., work rules) and in their specific jobs.  It's an element of fairness that juries will look for. It also means that employees can't say, "I never knew that."

Equally important is telling employees honestly how they are performing. If you call a poor performer "satisfactory" and then try to terminate for poor performance—you'll be accused of discrimination. You'll argue poor performance, but the jury won't believe you.

Step 4. Be Fair to ALL Employees.

Juries tend to rule based on fairness rather than on any nuances of the law. So think of the questions a jury member might ask:

• Did the employee know what the employer expected?
• Did the employee understand the consequences that could result from his or her actions?
• Did a manager take action before finding out the facts?
• Was the situation treated consistently with similar situations?
• Were policies and rules followed?
• Did the employee have a chance to explain?
• Did the employer "kick the employee while he or she was down"?

In tomorrow's Advisor, we'll finish off the ten steps, and we'll take a look at a unique program for smaller HR departments.

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