In 2002, Gulfstream Aerospace settled a class action lawsuit that resolved cheating between $ 2 million between EEOC and its 60 employees. The airline was convicted of age discrimination. Mr. Gulf Stream denied the complaint alleging instead that the workers were dismissed as part of the shrinking effort. However, the EEOC proved that elderly workers had retired collectively in the past.
In response to this settlement, S. Robert Royal, attorney at Atlanta, EEOC, said: "Companies that lay off more experienced employees to hold less young people violate the law and sued for discrimination These lawsuits suffer considerable monetary compensation for companies Bringing it, it may damage reputation.
Litigation arising from discrimination cases is an unintended consequence of mass layoffs. Companies that rely on dismissal as a cost reduction measure sometimes overlook the possibility of illegal dismissal. Because the specific requirements must be met, the law dealing with this problem can be complicated. However, in the Gulfstream example, EEOC relied heavily on statistical reports on how this adverse effect was exerted on this aged worker.
Under other circumstances, an unreasonable cancellation request may occur. For example, under the Employment Law it is illegal to retaliate workers to raise discrimination suits. It is clearly illegal to dismiss an employee who refuses illegal behavior. Also, it is forbidden to obey the company's policy to order dismissal.
However, the most costly of these claims comes from discrimination. Management must be familiar with applicable laws and consult attorneys before making final decisions. You should be careful in order to avoid dismissing individuals who fall under categories of protected classes. Federal law prohibits the layoff of employees based on factors such as race, color of the skin, religion, disability, sex.
Whether individuals are involved in dismissal or even if they include groups, it is necessary to abide by the procedures stated in the policy handbook. From time to time, there may be industry-specific laws that require consideration. This requires companies to provide timely notifications to employees or to provide compensation packages. Failure to observe the small requirements will result in a wasteful burden on the company's resources.
The effectiveness of performance evaluation has become a problem recently, but it will benefit the employer by protecting it from future litigation. Actions that do not meet the management's standards should be properly documented and call for employee's attention. The ultimate goal is to leave a paper trail when formal complaints are filed.
Employee complaints can be a significant cost to the company. In order to protect themselves, it is necessary to respect existing employment laws and implement existing policies to avoid costly litigation.
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