Employment lawsuits rarely occur from a single event. Often times they result from overlooked details, inconsistent enforcement, and poor communication. When an organization handles a workplace issue carelessly, employees have the chance to fill the gaps with their own assumptions and often times those assumptions lead to lawsuits.
\nBelow are some of the reasons that frequently land employers in court and some suggestions to assist in avoiding these pitfalls by strengthening compliance and workplace decision-making.
\nPerformance review sabotage: A manager or supervisor tolerates poor performance for months, then moves to terminate even though their personnel file shows either “meets or exceeds” ratings on their evaluations. This makes the firing looks suspicious and invites a discrimination claim.
\nSuggestion: Document consistently: Make written evidence of poor performance a prerequisite for any termination.
\nInadequate separation reasons: Letting an at-will employee go without any explanation gives the employee room to invent one, often assuming retaliation or bias.
\nSuggestion: Memorialize separation reasons: Put the honest reason for a termination in writing so employees cannot fill the gap themselves.
\nInsufficient interactive accommodation processes: Not fully engaging in or going through the interactive process for a disability accommodation request, can lead to Americans with Disabilities Act (ADA) claims.
\nSuggestion: Use accommodation checklists: Standardize the interactive process and keep job descriptions accurate, current and include the physical requirements of the position.
\nPoor investigation practices: Delaying, rushing, or skipping an investigation into a complaint sends a message to employees that their concerns do not matter and erodes trust across the organization.
\nSuggestion: Standardize investigations: Identify trained investigators in advance, follow clear steps, and close the loop with whoever filed the complaint.
\nUntrained or poorly performing managers: Supervisors or managers who misunderstand the law drive employees out or mess-up compliance requests, exposing the company to liability.
\nSuggestion: Invest in manager training: Coach supervisors on the essentials, centralize HR decision-making, and remind them of personal liability.
\nWage and hour compliance errors: Sloppy time tracking, miscalculated regular rates of pay, and misapplied exemptions fuel costly wage claims.
\nSuggestion: Track hours and pay carefully: Get the basics right on the regular rate of pay and record every working hour.
\nFailure to follow company policies: A thorough handbook means little when one employee faces discipline for a violation and another is not handled similarly.
\nSuggestion: Enforce policies evenly: Update handbooks as laws change, review the relevant policy and how it’s been handled previously for others before disciplining anyone.
\nMisclassification of employees as contractors: Engaging a worker as a contractor while controlling their work like an employee violates the Fair Labor Standards Act.
\nSuggestion: Audit classifications regularly: Track current U.S. Department of Labor guidance and reassess contractor relationships often.
\nNeglecting leave alternatives: Terminating an employee the moment their Family and Medical Leave Act leave runs out is ignoring that added leave can be a reasonable ADA accommodation.
\nSuggestion: If an employee tells you they cannot return when FMLA expires, avoid automatically terminating employment. Instead:
\nMaintaining an unhealthy work environment: Allowing bullying and incivility to fester builds opportunities for conduct that genuinely breaks the law.
\nSuggestion: Build a respectful culture by setting a top-down standard of zero tolerance for harassment, with clear reporting channels. Strong compliance is not a one-time project. It is a daily practice that protects your people and your bottom line.
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