Turbulent times can create litigious employees.

• Author: Zickerman, Jason
• Position: Private companies

The economy is turning some good people into desperate plaintiffs. With unprecedented numbers of terminations and layoffs, employers need to understand that--if not executed properly--employees may seek the opportunity to move forward with wrongful termination suits.

One wrongful termination lawsuit or discrimination complaint could suffocate a private company with countless hours of paperwork and taint a firm's reputation for years, or even force it out of business.

Therefore, it is imperative that private companies protect themselves, their businesses and their employees.

Here are five common termination mistakes that can get companies entangled in litigation during workforce reductions, as well as some suggested ways to avoid these pitfalls:

1. Just because you watch Law & Order doesn't mean you're a lawyer.

   Failing to understand the law will almost always land someone in hot water. Make sure that your organization's managers, supervisors and other key decision-making employees are instructed in the basics of employment law. This includes formulating a step-by-step termination procedure.

   The firm's employee manual should address the procedures for a reduction in workforce--including terms for dismissal--and should directly reflect the established termination procedure.

2. "If it was up to me, you'd still be working here."

   The context in which mangers deliver termination communication is important. A frequent hazard stems from ambiguous statements.

   For example, vague messages such as, "If it was up to me, you'd still be working here," or "It looks as though we most likely won't be able to keep you on," may push the organization into a legal situation.

   The solution is contingent upon preparation. Assist managers in rehearsing and practicing key messages by written speaking points to deliver the communication in an appropriate and consistent fashion.

3. Ready, Fire, Aim.

   If charged with discrimination, your business will have to prove that the termination was business-related. Managers who neglect to document policy violations and inadequate performance make it challenging to support the company's defense.

   The fix, once again, relates to training key staffers. Make sure managers support any employment actions--including firings--with complete and appropriate documentation. Even in at-will states, disgruntled employees can claim age discrimination and/or gender discrimination and frequently prevail. Thus, employee files need to be detailed...