When you’re faced with the prospect of disciplining or discharging an employee, you may give the worker several different reasons for your decision. However, a new case points out the importance of getting your story straight before you terminate someone. That’s because if you provide conflicting explanations, you may inadvertently give the employee an opening to claim you’re trying to cover up an illegal motive for your actions. But following a few simple guidelines can go a long way toward avoiding trouble.
Employer Changes Reasons For Firing Employee
RadLee Payne, a loan manager for Norwest Corp., filed charges with the government alleging the company had discriminated against him on the basis of race, gender, age and disability. Just a few days later, Norwest fired Payne for insubordination.
Payne then turned around and sued. He argued that Norwest’s real reason for the discharge was to retaliate against him for filing the discrimination complaint. To support his claim, he pointed to the fact that Norwest gave him several different reasons for the termination.
At first, Payne’s supervisor told him he was being fired because he made a copy of a voice mail message that wasn’t meant for him. A few days after the termination, Payne was told he was fired for insubordination. Later he was told he violated Norwest’s code of ethics by using confidential company information for his personal gain. Finally, Payne’s lawyer was told that Payne had threatened to use the taped voice mail to catch his supervisor in a lie.
Norwest tried to get the suit thrown out of court before trial. It contended there was no evidence Payne was fired for anything other than insubordination. Norwest also claimed that the reasons it gave for Payne’s termination weren’t inconsistent at all.
400+ pages of state-specific, easy-read reference materials at your fingertips—fully updated! Check out the Guide to Employment Law for California Employers and get up to speed on everything you need to know.
Illegal Motive Behind Employer’s Changing Story
The federal Ninth Circuit Court of Appeal, which covers California, explained that when an employer gives multiple, different justifications for terminating an employee, it suggests that none of the official explanations was the true reason. And that makes it more likely the employer had an illegal motive because, according to the court, “one who tells the truth need not recite different versions of the supposedly same event.”
The court rejected Norwest’s argument that the reasons it gave were simply different ways of saying Payne had been insubordinate. The court found that the company’s justifications were substantially different from one another. For example, using company information for personal gain is not the same as threatening a supervisor. Payne now has the go ahead to try to prove to a jury that Norwest terminated him for filing the discrimination charges.
How To Stay Out Of Trouble
With some advance planning, there are steps you can take to avoid a similar legal tangle:
- Justify your actions. If an employee has complained about your alleged illegal conduct, as Payne did, be sure to take special precautions. Before disciplining the person for misconduct or other problems, it’s critical to thoroughly investigate the situation and document the objective reasons for your decision. Also, keep in mind that employees have a right to inspect their personnel files and, in the event of a lawsuit, you will have to disclose these documents. Make sure your decisions are supported by, and consistent with, the employee’s performance and discipline record.
- Use caution communicating with the worker. If you decide to give an employee detailed reasons for your action, consider using a letter or designating one person (along with a witness) to speak with the employee about it. That will reduce the chance of inconsistencies in what the person is told.
- Stick to your original story. Be clear from the start why you are taking action. Once you’ve explained your reasons to the employee, try not to change your story.