Getting rid of a dud? Take care
Not only is it sometimes difficult to fire an employee who doesn't live up to the mark, it can be costly as well, if the current trend continues.
Not only is it sometimes difficult to fire an employee who doesn't live up to the mark, it can be costly as well, if the current trend continues. New York City Attorney Ellizabeth Hobson says, "The backlog of defamation cases initiated by discharged workers against their former employers is close to an all-time high. Some cases on file show judgments awarded in excess of $10 million."
Usually the higher priced the terminated employee, and the tighter the labor market, the greater the judgment. An engineer in his mid-30s, who blamed "loss of reputation due to defamation" for his inability to obtain new employment, won a $7 million suit.
Defamation comes in a variety of brands and the plaintiff must prove that the ex-employer's statement was "published" which means written or verbal "publication." Proof must also be furnished that the statement was false and resulted in injury.
"One way for a company to avoid getting stung," says Hobson, "is to initiate a policy for reference requests to be handled by skilled personnel executives with the training and savvy to avoid careless and thoughtless statements." The importance of care must also be stressed with regard to other than reference situations as well.
In one situation, a suit was initiated by a discharged welder unable to find reemployment in a suburban Ohio town. He won a fat award after being able to prove that a statement made by his former supervisor while at lunch with two other supervisors from nearby plants caused "irreparable damage to his reputation." The statement: "That guy's an accident waiting to happen," made the rounds in the local community, the plaintiff claimed, and resulted in his "virtual blacklisting."
Examples of defamation involve statements alleging dishonesty, sexual misconduct, and incompetence which reach prospective employers.
Question: What steps can management take to minimize the risk of defamation lawsuits?
Safest course: As stated, those authorized to respond to reference inquiries should be highly selective. On top of that, supervisors and managers should be briefed and made aware of the pitfalls and risks involved. Care should be taken to assure that performance appraisals are seen only by authorized personnel. Finally, all personnel should be cautioned against expressing negative comments about other employees, former and current.
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After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.
The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.