Top Legal Pitfalls in Hiring & Firing: What to Avoid
The practice of hiring and firing employees can lead to several legal pitfalls. Employers need to be careful about staying true to workplace policies and the laws surrounding employment when deciding whether to bring a new employee on or let one go. Employers should avoid the following mistakes to ensure everyone’s interests are protected.
Inconsistent Hiring Practices
Inconsistency with hiring practices can leave employers vulnerable. When hiring practices are inconsistent, this can give discrimination claims validity, especially when a case can be made that a prospective or current employee was treated differently based on characteristics like age, race, gender, or disability. It’s best practice for companies to develop a standardized interview process with structured questions and evaluation criteria. This ensures all candidates are assessed fairly and minimizes legal risks for the employer.
Unclear Job Descriptions
Job descriptions that are vague can create issues. If an employer is accused of discrimination or wrongful termination, lacking a clear description showing the employee’s job requirements weakens the defense. Employers should craft job descriptions that clearly outline the responsibilities and qualifications for the position. This makes it easier for the employer to recruit the right candidate for the job and protects them if they are accused of wrongful termination.
Unfair Background Checks
While background checks are sometimes a necessary part of the hiring process, employers must be careful to follow Fair Credit Reporting Act (FCRA) guidelines. Failing to obtain proper consent or not providing candidates with the opportunity to dispute negative findings can cause legal issues. Employers need to ensure background check procedures comply with FCRA regulations. Obtain written consent from candidates and provide them with the necessary disclosures and opportunities to contest findings. Employers must also be familiar with their state’s laws concerning conviction and arrest record discrimination when conducting background checks.
Ignoring Employment Contracts and Policies
Be sure not to overlook the importance of updating employment contracts and company policies. Failing to provide clear terms of employment can result in misunderstandings. Employers can stay out of trouble by creating comprehensive employment contracts that outline employment terms, including at-will status, confidentiality agreements, and grounds for termination.
Lack of Documentation
Employers find themselves at a disadvantage in a legal dispute if they lack proper documentation of hiring decisions and performance issues. Without clear records, it becomes difficult to justify actions taken against an employee. Make sure to maintain thorough documentation of hiring choices, employee performance evaluations, disciplinary actions, and termination processes.
Termination without Cause or Procedure
Firing an employee without established procedures can lead to claims of wrongful termination. Even in at-will employment situations, proper procedures need to be in place to to keep things clear and transparent . Establish a clear termination process, including a review of the employee’s performance and any disciplinary actions taken. Ensure that all decisions are justified and documented.
An employment lawyer can help you with creating clear processes and updating documentation needed to establish a fair, legally compliant workplace. If you have questions about your organization’s practices and documentation, reach out to Walcheske & Luzi.