Hiring and Firing And Everything In Between - Chubbworks · PDF fileNATURE AND REPRESENT THE...
Transcript of Hiring and Firing And Everything In Between - Chubbworks · PDF fileNATURE AND REPRESENT THE...
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May20,2009
PresentedBy:RobertM.Pa6son,Esq.
JacksonLewisLLP199FremontSt.,10thFl.SanFrancisco,CA94105
(415)394‐[email protected]
HiringandFiringAndEverythingInBetween
©2009,JacksonLewisLLP
Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
andrelatedli2ga2on.15/20/09
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THEMATERIALS CONTAINED IN THIS HANDOUTWERE PREPARED BYTHE LAW FIRM OF JACKSON LEWIS LLP FOR THE ATTENDEES’ OWNREFERENCE IN CONNECTION WITH MANAGEMENT EDUCATIONSEMINARS PRESENTED BY THE FIRM. SINCE THESEMATERIALS ANDRELATED DISCUSSIONS ARE INFORMATIONAL AND EDUCATIONAL INNATURE AND REPRESENT THE SPEAKER’S OWN VIEWS, ATTENDEESSHOULDCONSULTWITHCOUNSELBEFORETAKINGANYACTIONSANDSHOULD NOT CONSIDER THESE MATERIALS OR DISCUSSIONSTHEREABOUTTOBELEGALOROTHERADVICE.PROFESSIONALADVICESHOULDBEOBTAINEDBEFOREATTEMPTINGTOADDRESSANYLEGALSITUATIONORPROBLEM.
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ABOUTTHEPRESENTERROBERTM.PATTISON
RobertM.Pa6son,istheManagingPartneroftheSanFranciscoofficeofJacksonLewisLLP.
Mr. Pa6son represents employers in employment li[ga[on, fair employment,wage andhour,laborrela[onsandhumanresourcesma]ers.Hehasrepresentedemployersinavarietyoflaborand employment ma]ers in state and federal courts – including in wage‐hour class ac[onlawsuits – andbefore government agencies throughout thewesternUnited States for over 25years.
Mr.Pa6sonisamemberoftheStateBarofCaliforniaanditsemploymentlawsec[on. Heco‐authored "Aggressive Defense of Employment Li[ga[on", Surveying the Workplace LawLandscape, 1995 Jackson Lewis Conference for Corporate Counsel; "The Secret Truth AboutInspec[onofPersonnelFiles",LaborandEmploymentLawNews,Vol.5,No.5(Spring1987);and"Collec[ve Bargaining: Management's Opportunity to Improve Labor Economies", EmployeeRela[onsJournal,No.1(Summer1985). Hewastheco‐editorofLowestResponsibleBidder: AGuide to Merit Shop Construc[on, Execu[ve Enterprises Publica[ons Co., Inc., New York, NY(1985).
Mr. Pa6son is a graduate of the University of California’s Has[ngs College of the Law in SanFrancisco (during his third year, he clerked for the Division of Judges of the Na[onal LaborRela[onsBoard)andoftheUniversityofCaliforniaatDavis.
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WhyAreTheseTopicsImportant?
BecauseEmployment‐RelatedClaimsAreontheRise!
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ClaimsontheRise• More than one‐half of all employersweresuedbetween2000and2005.
• In 2006, the Equal EmploymentOpportunity Commission (“EEOC”) filed403 lawsuits on behalf of employees,comparedtoonly332suitsfiledbythatagencyin1997.
Source: SocietyforHumanResourceManagementDepartmentofJus2ce
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
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The“BigFour”ReasonsEmployeesBringClaims
• Treatmentattermina2on:Dignity,respect,honestexplana2ons
• Financialhardship
• Fairtreatmentduringemployment
• Expectedpayofffromclaim
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
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TheConceptofEmployment“AtWill”&Erosionofthe“At‐Will”
Doctrine1. ContractClaims2. PublicPolicyClaims
3. TortClaims
4. General“WrongfulDischarge”
5. Discrimina2onLaws
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OVERVIEWOFEMPLOYMENTDISCRIMINATIONLAWS
• TITLEVIIOFTHECIVILRIGHTSACTOF1964• EQUALPAYACTOF1963• AGEDISCRIMINATIONINEMPLOYMENTACT• EXECUTIVEORDER11246• VOCATIONALREHABILITATIONACTOF1973• CIVILRIGHTSACTOF1866• FAIRLABORSTANDARDSACT• AMERICANSWITHDISABILITIESACT• FAMILYANDMEDICALLEAVEACT• WORKERADJUSTMENTANDRETRAININGNOTIFICATION
ACT• UNIFORMEDSERVICEEMPLOYMENTANDREEMPLOYMENT
RIGHTSACT• STATELAWS
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BasicsofEqualEmploymentOpportunity
Applicantsandemployeeswithequalqualifica2onsandskillsmustbetreatedequally.
Employersmustprovidevalidbusinessreasonsforadverseac2ons.
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BasicsofEqualEmploymentOpportunity
Excep2onstotheruleofequaltreatment:
Religion
Disability
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SampleEqualEmploymentOpportunityPolicy
[Employer]believesthatallpersonsareen2tledtoequalemploymentopportunity.[Employer]doesnotdiscriminateagainstnorfavoritsemployeesorapplicantsbecauseofrace,color,religion,sex,age,veteranstatus,disability,na2onalorigin,oranyotherlegallyprotectedstatus.Equalemploymentopportunitywillbeextendedinallaspectsoftheemployer‐employeerela2onship,including,butnotlimitedto,recruitment,hiring,training,promo2on,transfer,demo2on,compensa2on,benefits,layoff,andtermina2on.Inaddi2on,[Employer]willmakeareasonableaccommoda2ontoknownphysicalormentallimita2onsofanotherwisequalifiedapplicantoremployeewithadisabilityunlesstheaccommoda2onwouldimposeanunduehardshipontheopera2onofourbusiness.Allemployment‐relatedpolicies,procedures,andac2onsaredesignedtocomplywithapplicablelaws.
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
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SmartHiring
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StartOffOnTheRightFoot
• Thebestplacetoavoidaproblemisattheoutsetoftheemploymentrela2onship
• Effec2ve(andlawful)interviewing
• Smarthiring‐the“bestqualified”
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EmploymentApplica[onsTimesHaveChanged–ChangeWiththe
Times
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DO’SANDDON’TSOFEFFECTIVE
JOBINTERVIEWING
TheJobInterview
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
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Why do we interview? To obtain necessaryinforma2onaboutjobapplicants.
General rule: limit inquiries to only thosesubjects necessary to evaluate the applicant’ssuitabilitytoperformhisorherjob.
Applicants, employees and inves2gatoryagencies (like the EEOC)will presume that anemployer uses all informa2on it collects inmakinghiringdecisions.
KeystoEffec[veandAppropriateInterviewing
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
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Besureallques2onsarejob‐related.Askaboutapplicant’sexperience,skills,abili2esandpastperformance.
Treatallapplicantsthesame.
KeystoEffec[veandAppropriateInterviewing
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Do’sandDon’ts:ImproperQues[onsCan
LeadtoLiability
If a job requires over2me, travel orreloca2on,explainwhatisrequiredandaskwhether the applicant can fulfill theserequirements.
Focus on the substance of a candidate’sexperience rather than on the number ofyearsofexperiencethecandidatehas.
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
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Do’sandDon’ts:ImproperQues[onsCan
LeadtoLiability
ItispermissibletoaskwhetheranemployeecanworkonSundays,SaturdaysorFridaynights,oranyotherschedule,ifthejobrequiresit.
If you ask about convic2ons, make clear thatcriminal convic2ons are not an absolute bar toemploymentbutwillbeconsideredinrela2ontospecificjobrequirements.
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
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Do’sandDon’ts:ImproperQues[onsCan
LeadtoLiability⊗ Marriage or Family Status: Avoid
ques2onsaboutmaritalstatus,numberofchildren,andchildcare.
⊗ Avoid ques2ons that presume marriedwomen or people with children will beless able to work long hours. Do notrequest informa2on about child carearrangements.
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⊗ Avoid ques2ons about home life, socialinterestsandhobbies.
⊗ Pregnancy; childbearing plans: AVOID THESUBJECT ENTIRELY!!! Do not ask anyapplicant,male or female, about his or herplanstohavechildreninthefuture.
⊗ Age: Do not ask ques2ons or make anystatements or references to an applicant’sage, including, date of birth or gradua2ondate.
Do’sandDon’ts:ImproperQues[onsCan
LeadtoLiability
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⊗ Poli2cal Affilia2on: Do not ask an applicant’spoli2cal affilia2on or other ques2ons thatmayelicit informa2onabouttheapplicant’spoli2calviews.
⊗ Source of income: Do not ask an applicantwhether he or she receives alimony or childsupport, or other ques2ons that may elicitinforma2on about the applicant’s sources ofincome.
Do’sandDon’ts:ImproperQues[onsCan
LeadtoLiability
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⊗ Religion: Do not ask an applicant’s religiousfaith, denomina2on or affilia2on, or whichchurchtheapplicantbelongsto.
⊗ Personal appearance: Do not comment on anapplicant’s personal appearance or dress,including, in par2cular, hairstyles or dress thatmay be associated with a par2cular racial orethnicgroup.
Do’sandDon’ts:ImproperQues[onsCan
LeadtoLiability
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⊗ Donotaskwhetherapplicantisaci2zenorapplicant’sna2onaloriginorbirthplace.
⊗ Do not ask applicants whether they haveeverbeenarrested.
⊗ Donotask“na2ve”language,whereorhowthe applicant learned the language orwhetherEnglishis“second”language.
Do’sandDon’ts:ImproperQues[onsCan
LeadtoLiability
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⊗ Club Memberships, Associa2ons, UnionMemberships: onlyaskaboutprofessionalorotherassocia2onsthathaveabearingonthejobrequirements.
⊗ Sexual orienta2on: Do not ask ques2onsabout sexual orienta2on or ques2ons thatmight be interpreted as asking about sexualorienta2on (for example, the gender ofsomeone’sroommate).
Do’sandDon’ts:ImproperQues[onsCan
LeadtoLiability
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ObtainingandUsingThird‐PartyInforma[onintheApplica[on
Process
TypesofThird‐PartyInforma2on:
• Inves2ga2veConsumerReports:‐ TheFederalFairCreditRepor2ngActProvidesGuidelinesFor EmployerUseofInves2ga2veConsumerReportsintheHiring Process
• CriminalBackgroundChecks
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BasicsofFRCACompliance:
• Step1.Providedisclosureandobtainconsent.
• Step 2. Provide Disclosure of Employer’s Request for theInves2ga2veConsumerReport.
• Step 3. No2fy the applicant or employee of adverseinforma2on in inves2ga2ve consumer report consideredbeforeadverseemploymentac2onistaken.
• Step4.Makeemploymentdecision.
• Step5.No2fytheapplicantoremployeeofadverseac2on.
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Pre‐EmploymentScreeningApplicantsWithCriminalRecords
Indeterminingwhetherornottodenyemploymentbasedonanapplicant’s convic2on of a crime, an employer should considerthefollowingfacts:
A.therela2onshipofthecrimetohis/herjobdu2es; B. the nature, number and circumstances of the
offense(s)forwhichtheindividualwasconvicted; C. the length of 2me intervening between the
convic2on(s)andtheemploymentdecision.D.theindividual’semploymenthistory;andE.theindividual’seffortsatrehabilita2on.
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THETOPTENTIPSFORAVOIDING
LEGALLIABILITYINHIRINGEMPLOYEES
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
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TheTopTen...
1. Train your supervisors and managers onpermissible and impermissible employmentinquiries.
2. Ensure your interview process is accessibletodisabledapplicants.
3. Review and, if necessary, modify youremployment applica2on with “fullemployment”inmind.
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
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TheTopTen... 4. Check into the criminal backgrounds of all
applicants.
5. Beawareofnegligenthiringclaims.
6. Comply with the requirements of the FairCreditRepor2ngAct.
7. Avoid crea2ng unrealis2c expecta2ons ininterviews, offer leqers or other pre‐hirecommunica2ons.
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
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TheTopTen...
8. Donot create any documenta2on thatmayproveproblema2clater.
9. Bewaryofcoyornon‐commiqalapplicants,conten2ous salary nego2a2ons, and othersignsoffuturetrouble.
10. Devote sufficient resources and talent tothoroughly orient new hires to yourcompanyanditsculture.
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“TheEverythingInBetween”
– PerformanceEvalua2ons
– HowToEffec2velyAndConsistentlyDiscipline
– ComplianceWithWage/HourLaws
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PerformanceEvalua[ons
• ImprovesEmployeePerformance
– Makesgoodperformerbeqer.– Makespoorperformancebeqer.
• Donotusenega2veevalua2onstopunish.• Implementacorrec2veevalua2onphilosophy.
• CreatesaRecordofPerformance.
– Usedaslegi2matebasisformakingpersonneldecisions.– Usedasevidenceinalawsuitoragencyproceedingfiledby
disgruntledemployeeorformeremployee.Jackson|LewisLLPRepresen2ng
managementexclusivelyinworkplacelawandrelatedli2ga2on.
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
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WhyisthePerformanceEvalua[onProcessCri[cal?• Avoidstheappearance,letalonethereality,offavori[sm
anddiscrimina[on;
• Providesmanagementanopportunitytoassessthediverse
rangeofemployeestrengthsandneeds;
• Givesmanagementobjec[vecriteriatouseinevalua[ngand
trainingemployees;and
• Establishesaforumfordocumen[nganddiscussingweakANDstrongperformance.
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
andrelatedli2ga2on.
Things to Avoid The“Halo”Effect–donotletyourposi2vera2ngin
oneareainfluenceyouinotherareas;
The“Horn”Effect–Donotletyournega2vera2ngin
oneareaaffectotherareas;
Leunglengthofserviceaffecttheperformanceaspect
oftheevalua2on;and
Considera2onofnon‐workrelatedfactorsthatcould
bediscriminatory.
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DisciplinaryWarnings
• DualPurposes.
– Correc2ve.
– Legal.
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WhattoIncludeinDisciplinaryWarning.
• Problem–Whathappened?Bespecific!– Ifproblemresultsfromahistoryofsimilarincidents,refertothishistory.
– Ifaprobleminvolvesspecificimproperlanguage(obscene,sexual,insubordinate,etc.),statetheexactwordsinquotes.
– Ifaprobleminvolvescarelessnessorpoorworkperformance,describetheactorspecificdeficiency.
– Ifaproblemisaviola2onofCompanypolicyorarule,statethepolicyorrule.
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WhattoIncludeinDisciplinaryWarnings(cont.)
• Implica2ons.– Describewhytheproblemisimportanttoyou,yourdepartmentortheCompany.
– Whateffectdoesithaveonotheremployees?
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WhattoIncludeinDisciplinaryWarning(cont.)
• PriorRecord.– Whatistheemployee’spriorrecordonthisorsimilarproblems?
– Whatpriorcontactshavetherebeenonthis?
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WhattoIncludeinDisciplinaryWarning(cont.)
• Correc2onDesired.
– Inwhatwaysdoyouexpecttheemployeetocorrecthisproblem?Bespecific.
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WhattoIncludeinDisciplinaryAc[on(cont.)
• DisciplinaryAc2on:
– Stateclearlywhatac2onisbeingtakennowandwhatfutureac2onmaybetakenifnoimprovementismadeorifincidentisrepeated.
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
andrelatedli2ga2on.
IFTHEEMPLOYEEDOESNOTIMPROVE
Ensurethereisappropriatedocumenta[on
ofpast/currentproblems
Ensuredisciplinarystepsoutlinedinthe
handbookhavebeenfollowed
Makesuretheemployeewasgiventhe
opportunitytocorrecttheproblem(s)
Considerpasttreatmentofotheremployees
undersimilarcircumstances
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
andrelatedli2ga2on.
Termina[onProcesses
445/20/09
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
andrelatedli2ga2on.
Pre‐Termina[onConsidera[ons
Employment at Will or Employment
Contract? Benefits about to
vest?
Consulted HR and Legal?
Protected status arguably have anything to do
with the decision?
Articulated the real reason? Separation Notice? Logistics (timing,
location, witnesses)
Employee put on notice and advised how to
improve and by when? Evaluations and documentation
support the decision?
Final Paycheck, Benefit Calculation, Coverage of Duties, Announcement, etc.
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
andrelatedli2ga2on.
TheDischarge• Twomanagement
representa2ves
• Bedirect,professional,andfirm
• DoNotArgue/Jus2fy
• DoNotSuggestSelf‐Improvement
• DoNotApologize
• AvoidDiscriminatoryRemarks
• ArrangeReturnofCompanyProperty
• Non‐Compete?
• ExplainAnyBenefits
• ExitInterview
• EscortOff‐site
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
andrelatedli2ga2on.
Post‐Termina[onConsidera[ons1. Documenta[on
2. InformThoseWithBusinessNeedtoKnow
5. Separa[onandReleaseAgreement
6. References(Name,DatesofEmployment,andPosi[onHeld)
9. COBRANo[fica[on/401(k)
11. RemoveFromPayroll
12. AccessIssues ‐Accesstoproperty
‐Computeraccess
8. RequestforPersonnelFile
9. AppealorDemandLe]er andOtherBenefitIssues
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
andrelatedli2ga2on.
Miscellaneous
‐ Resigna2on
‐ Separa2onNo2ce
‐SeveranceAgreements
‐COBRA
‐OutplacementAssistance
‐SecurityPrecau2ons
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
andrelatedli2ga2on.
DEVELOPINGANEMPLOYEEHANDBOOK
495/20/09
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
andrelatedli2ga2on.
PurposeofEmployeeHandbook
• LegalCompliance/Protec[ons• DisseminateOpera[onalPolicies• “Sell”YourCompany• CommunicateCorporateCulture• ConveyExpecta[ons• Effec[veReferenceToolforEmployees• Effec[veReferenceToolforManagement
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
andrelatedli2ga2on.
LegalCompliance
• Disclaimers(statespecific)
• EEOPolicies
• HarassmentPolicies
• ComplaintProcedure
• TimeAwayFromWorkPolicies(paidandunpaid)
• StateRequiredLeavesandOtherLaws(FMLAifapplicable)
LegalProtec[ons
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
andrelatedli2ga2on.
Opera[onalPolicies
• ExplainOpera[onalPrac[ces(createrealis[cexpecta[ons)
• DefineRulesAndRegula[ons
• JobAdvancementOpportuni[es
• LeavesofAbsence
• WorkplaceResponsibili[esandConduct
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Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
andrelatedli2ga2on.
“Selling”YourCompany• KeepitSimple!
• EnhanceEmployeeRela[ons ConveyCompanyculture/values,e.g.VisionStatement WelcometoCompany Describe(andestablish)workenvironment Opendoor Enhancereten[on
• “Selling”Benefits Createposi[vepercep[on Maximizeuse
• EnhanceRecrui[ng
• CommunicateCompany’sVisionStatement
535/20/09
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Audi[ngHR
• Whyaudityourhumanresourceprac2ces?– EmploymentlawwhichimpactsHRevolvesover2me– HRpoliciesandprac2cesmustkeeppacewithdevelopmentsinthelawandHRknowledge
– Needtoregularlyaudittokeeppoliciesandprac2cesaheadofthoseofyourcompe2tors
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KeyAreastoAudit
• AreWorkersBeingTreatedProperlyAsEmployeesorIndependentContractors?
• Dowehaveemploymentcontractsandaretheyup‐to‐date?• Areemploymentapplica2onscurrent?• Doouremployeehandbookscontainappropriatedisclaimers?• Doouremployeehandbookcontainallessen2alpolicies?
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Employeesv.IndependentContractors
• Nosingletesttodeterminewhetheraworkerisanemployeeorindependentcontractor.
• Therearedifferenttestsusedbythecourtsandregulatoryagencies.
• Weneedtocompletelyconsideralltestsinordertoproperlyclassifyaworker.
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TheIRS’s“20Ques[ons”
• IndeterminingwhetheraworkerisanemployeeforwhomincometaxmustbewithheldandsocialsecurityandFICApaid,theIRSconsidersanemployer’sresponseto20ques2ons.
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TheIRS’s“20Ques[ons”• Doestheworkerhavetocomplywithinstruc2onsaboutwhen,whereandhowworkistobedone?
• Doyouprovidetrainingfortheworker?• Aretheservicesprovidedintegratedintoyourbusinessopera2ons?
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TheIRS’s“20Ques[ons”Con[nued
• Musttheservicesbeperformedbytheworkerpersonally?
• Cantheworker“subcontract”?• Istherela2onshipcon2nuing?• Doyousettheworkers’hours?• Doestheworkerdevotehis/herfull2metoyourbusiness?
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TheIRS’s“20Ques[ons”Con[nued
• Istheworkperformedatyourplaceofbusiness?
• Doyoudeterminetheorderorsequenceofworktobeperformed?
• Doestheworkerprovideregularreports?• Istheworkerpaidonanhourlyorsalarybasis?
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TheIRS’s“20Ques[ons”Con[nued
• Doyoureimbursetheworkerforbusinessexpenses?
• Doyoufurnishtheworkerwithtoolsandmaterials?
• Doestheworkerhaveaninvestmentinhis/herowntoolsorfacili2es?
• Cantheworkerrealizeaprofitorsufferaloss?
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TheIRS’s“20Ques[ons”Con[nued
• Cantheworkerperformworkforothers?
• Doestheworkermakehis/herservicesavailabletothegeneralpublic?
• Istheworkersubjecttodismissalfornon‐performanceofcontract?
• Cantheworkerterminatetherela2onshipwithoutliabilityforfailuretocompleteajob?
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The“EconomicReali[es”Test
• UsedbythecourtsandtheWageandHourDivisionoftheDepartmentofLabortodetermineifworkerisanemployeeen2tledtominimumwageandover2mecompensa2on
• Focusesonworkers’abilitytomakeaprofitorsufferaloss
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EmploymentContracts
• Dowehaveemploymentcontracts?• Aretheyup‐to‐date?Check:
• Posi2on• Du2es• Compensa2on• Term• Termina2onProvisions• Arbitra2onClause• Non‐compe22on/NoSolicita2onRequirements
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QUESTIONS
&
ANSWERS655/20/09
Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw
andrelatedli2ga2on.