Jennifer Scott was the director of the Rocklin (near Sacramento) campus of Phoenix Schools, Inc.—a franchise of private preschools.
Scott told the parents of a prospective student that the child would be wait-listed due to a lack of space, but another administrator at the same campus told the parents that there was a spot for their child available immediately. The parents complained about Scott to corporate headquarters, and she was fired.
Scott sued for wrongful termination in violation of public policy. The jury and the California Court of Appeals agreed with her—to the tune of $1.1 million.
Avoid unnecessary fines or potential lawsuits when terminating employees—download our Sample Termination Checklist.
How To Survive an Employee Lawsuit: 10 Tips for Success
With lawsuits against employers becoming ever more common—and jury verdicts skyrocketing—your risk of getting sued has increased dramatically even if you’ve done all the right things. Learn how to protect yourself with our free White Paper, How To Survive an Employee Lawsuit: 10 Tips for Success.
Although the Rocklin campus had not reached its overall enrollment capacity, the classroom that this particular student would join was understaffed as a result of two recent teacher departures—and California requires a certain student-to-teacher ratio in every preschool classroom. In other words, by refusing to enroll the child, Scott was complying with California law.
At trial, evidence was presented that Scott had frequently complained about staffing problems, and that Phoenix’s management was aware of both the staff shortage and the student-teacher ratio law. The jury found that Phoenix wrongfully terminated Scott for refusing to break the classroom ratio law, and awarded her $1.1 million in compensatory damages, as well as $750,000 in punitive damages. (On appeal, the punitive damages award was overturned.)
We’ll tell you more about this case, and what the employer should have done, in an upcoming issue of California Employer Advisor.
Protect Yourself When Terminating Employees
Few would dispute that terminating an employee is one of the most unpleasant tasks an employer faces. And the fact that you also need to keep track of a complicated set of legal concerns only adds to the stress. Most employers are acutely aware that if you make a mistake, you could be facing an expensive employee lawsuit.
So how can you be sure you’ve done everything to protect yourself? Our Sample Termination Checklist will help you cover the required information and complete necessary steps during a termination, to help you navigate the areas most likely to cause problems. Download your copy today!
As a subscriber to the California Employer Bulletin blog, you can start a free 7-day trial to instantly access this Checklist.