Seven Steps for Employers to Reduce Employee Lawsuits and Disputes

Employers in California can take several proactive steps to reduce employee disputes and lawsuits. Here are seven effective strategies.

1. Incorporate Clear “At-Will” Language: Employers should ensure that all workplace policies, including employment applications, agreements, offer letters, and handbooks, contain clearly worded “at-will” language. This language, drafted by an employment law attorney, is a crucial step to avoid any implied contractual obligations of continued employment. It provides a sense of security and sets clear expectations, reducing misunderstandings that could lead to disputes.

2. Train Management and Supervisors: Proper training for management and supervisors is crucial. They should be trained to avoid making written, oral, or implied representations contradicting the “at-will” employment relationship. Additionally, limiting the responsibility for interviewing and human resources duties to a select group of trained employees can help maintain consistency and reduce the risk of disputes

3. Consistent Performance Appraisals: Conducting candid and honest performance appraisals is essential. Supervisors should be trained to avoid inaccurate ratings and accurately document job performance problems. Written appraisals with employee acknowledgments can serve as substantial evidence in disputes, demonstrating that the employer has addressed performance issues fairly and consistently.

4. Carefully Avoiding Misleading Statements During Recruitment: This is a critical strategy for employers in California. During the recruitment and hiring process, it’s important to avoid making statements that could be interpreted as promises of job security or long-term employment. Consistency in interviewing procedures and materials provided to new employees can help prevent misunderstandings that might lead to disputes.

5. Implementing an Employee Dispute Resolution Plan: Establishing a comprehensive Employee Dispute Resolution Plan that includes binding arbitration can effectively manage disputes. Such plans should be clearly communicated to employees and included in employment agreements. This approach can provide a more efficient and cost-effective way of resolving disputes than litigation.

Fuentes v. Empire Nissan, Inc., 90 Cal. App. 5th 919, Wilson v. Am., 2018 Cal. Super. LEXIS 37180, Mun v. Korean Bbq Lee’s Tofu & Pho, 2022 Cal. Super. LEXIS 23424.

6. Engaging in the Interactive Process and Providing Accommodations: Employers must engage in the interactive process and provide reasonable accommodations for employees with disabilities as required by the ADA and FEHA. Failure to do so can lead to investigations, enforcement actions, and lawsuits. Employers should ensure they have clear policies and procedures to handle accommodation requests and document their efforts to engage in the interactive process.

7. Issuing Litigation Hold Notices: Employers are legally obligated to preserve all relevant evidence when a complaint is filed. Issuing a litigation hold notice to document custodians and the IT department can help preserve all relevant documents and data. This can prevent the destruction of evidence claims and demonstrate the employer’s commitment to complying with legal obligations.

By implementing these strategies, employers in California can significantly reduce the risk of employee disputes and lawsuits. Clear communication, consistent policies, and proper training are vital to a fair and legally compliant workplace. In conclusion, taking proactive steps such as incorporating clear “at-will” language, training management, conducting consistent performance appraisals, avoiding misleading statements during recruitment, implementing dispute resolution plans, engaging in the interactive process, and issuing litigation hold notices can help employers mitigate the risk of disputes and lawsuits. These measures protect the employer and contribute to a more transparent and fair working environment for employees.

If you are in need of legal assistance pertaining to an employee dispute or lawsuit, please contact us at your earliest convenience.