Employers today face many challenges when trying to manage their workforce while also avoiding possible legal issues. The increase in employment law cases throughout the country, including Tennessee, has made it even more difficult for businesses to remain compliant. Even employers who have the best of intentions can find themselves in a labor law dispute.
Our Knoxville business litigation attorneys know how stressful it is for business owners to manage the daily operations of their company and the possibility of lawsuits that may lead to litigation.
How Employers Can Avoid Wrongful Termination Lawsuits
When an employee is fired and feels as though the termination violated local, state, or federal laws, they may file a wrongful termination lawsuit against the employer. Tennessee is an at-will employment state, meaning that in most cases, employers can fire employees for any reason or even without reason. Still, there are important exceptions that give rise to employment law cases. The exceptions to the law include, but are not limited to:
- Breach of contract, including violations of collective bargaining agreements and union contracts
- Discrimination based on protected classes such as national origin, religion, sex, gender, disability, age, and race
- Retaliation for filing a workers’ compensation claim or labor complaint, participating in a legal investigation, exercising legal rights such as taking family medical leave, or whistleblowing
Contrary to what many employers think, the at-will employment law in Tennessee does not provide complete protection. It is critical for employers to approach any termination with caution and to thoroughly document any reason for the termination, warnings that were given, and anything else related to the firing. It is important to speak to a Knoxville business litigation lawyer who can ensure the termination aligns with applicable state and federal employment laws, as well as the internal policies of the company.
Preventing Employment Discrimination
There are many federal laws that prohibit employment discrimination, including Title VII of the Civil Rights Act and the Americans with Disabilities Act (ADA), to name just two. Tennessee has also enacted its own laws regarding employment discrimination, including the Tennessee Human Rights Act (THRA).
Employees typically file lawsuits against their employer when they believe they have been treated unfairly in promotion, hiring, discipline, or termination based on protected classes. Employment lawsuits can also arise when an employee has reason to believe that their employer wrongfully denied them reasonable accommodations for a disability.
There are many steps employers can take to avoid employment discrimination lawsuits, including:
- Maintain straightforward anti-discrimination policies and ensure employee handbooks are regularly updated, and that they include policies regarding requests for reasonable accommodations for disabled employees
- Train supervisors and Human Resources personnel on legal requirements, appropriate conduct, and conflict resolution
- Document decisions regarding employment, such as evaluations, warnings, promotions, demotions, and termination,s in a manner that is unbiased and consistent
- Implement complaint procedures that allow employees to internally report concerns
How to Ensure Compliance with Labor Laws
The best way to avoid employment lawsuits is to be proactive. There are many ways employers can remain compliant with labor laws, and they are as follows:
- Work with a business litigation lawyer: Employment laws are always changing. It is important to work with a Knoxville business litigation lawyer who can ensure that you comply with Tennessee and federal law. It is particularly important to speak to an attorney before terminating or disciplining any employee. An attorney can determine if the reasoning is fair and if the action is compliant with the law.
- Enact clear policies: By implementing clear and straightforward policies, employees will understand your expectations of their performance and behavior. Workplace policies can include everything from equal opportunity standards to the protocol for disciplinary actions.
- Consistently apply rules: When rules are not applied to all employees, some workers may view this as discrimination. Document all employment decisions and ensure that all employees comply with company policies.
- Encourage employees to communicate openly: Employees are more likely to handle concerns internally when they feel seen and heard. Creating a culture of transparency and honest feedback can help everyone involved avoid litigation.
Steps to Take if an Employee Files a Lawsuit Against You
If an employee takes legal action, there are several steps to take to protect you and your company. These include:
- Refrain from retaliating: It is frustrating to learn that an employee has taken legal action against you, but it is critical that you do not retaliate against them. Refrain from terminating, demoting, suspending, or reprimanding the employee. Also, do not reduce their salary, transfer the worker to another department or role, or create a hostile work environment. Any of these actions will only hurt your legal case.
- Keep all records: Retain all personnel files, emails, and your own notes regarding any complaint made by any employee. This can be very effective when defending your case.
- Immediately notify your attorney: You should notify your attorney as soon as possible after learning that an employee has taken legal action. Your lawyer can start building the strong case you need right away and guide you through mediation, arbitration, or another type of dispute resolution.
- Do not communicate directly with the employee: Contacting the employee directly can significantly hurt your case. You may say something that is damaging, incriminating, or inconsistent, and your words can be used against you, undermining your defense and creating additional legal issues. Only communicate with the employee through your attorney and theirs.
Our Business Litigation Lawyer in Knoxville Can Protect Your Company
Employment disputes are very disruptive to your business and your company’s reputation. At The Ebbert Law Firm, our Knoxville business litigation lawyer can help you successfully resolve your case, prevent future claims, and act as your advocate throughout all employment law matters. Call us today at (865) 503-5682 or fill out our online form to schedule a consultation with our experienced attorney and to learn more about how we can help with your case.