Good Employment Practices Can Prevent a Lawsuit
These days, people have a much greater awareness of their rights and protection under federal law. This means that businesses should be more sensitive than ever to the manner in which their employment situations are handled. To help you avoid sticky situations and costly lawsuits, here are some common questions with their answers.
Q. When interviewing job applicants, what types of questions are off-limits?
A. Never ask anything that is not job-related, including the applicant's age, nationality, religion, marital status, disabilities, and other personal issues. Sometimes even questions that seem pertinent to the job are taboo as well. For instance, asking a female candidate if late work hours will affect child-care arrangements could pose problems under sex-discrimination laws.
Q. I know I can be held liable for criminal or damaging actions of an employee. May I ask job applicants if they have been convicted of a crime?
A. Inquiring about convictions is permissible, but be careful. Some laws may require you to inform candidates that a conviction will not necessarily eliminate them from consideration.
Q. If one of our vendors sexually harasses an employee, could I be held responsible?
A. Yes. As a business owner, you may be held liable for sexual harassment committed by your employees, suppliers, and clients. Be sure you have a written policy against sexual harassment, and train your supervisors to educate employees on improper conduct.
Q. How can I guard against a discrimination lawsuit?
A. The first step is putting your job descriptions in writing, which provides evidence that you treat all applicants in a fair and consistent manner. Also, develop a written policy that demonstrates your commitment to anti-discriminatory behavior. Medical records should always be locked and stored separately from personnel records.
Q. I may have to fire one of my employees due to poor work performance. Could I be accused of wrongful termination?
A. Unfortunately, it has been known to happen to innocent business owners. Make sure you never guarantee permanent employment, and always keep records when you reprimand employees on their performance.
Q. I own a small business in a small town. Is employment practices liability really something for me to worry about?
A. A lawsuit can happen anywhere, so no business is immune - regardless of its size. Taking employment issues seriously will help protect the growth and reputation of your business.
Q. Is there any insurance protection against negligent employment practices?
A. A new coverage, employment practices liability insurance has been developed to offer protection beyond that of basic commercial policies. However, the policy is not standardized, so its coverage varies greatly Please see us for more information on how you can protect yourself from negligent employment practices.