What not to do when hiring and firing staff
December 1, 1999 2 minutes read
What not to do when hiring and firing staff
Lawsuits alleging wrongful dismissal are among the most common employment claims, and they can result in costly payouts, according to John Lyncheski, JD, an attorney with Cohen & Grigsby in Pittsburgh. Unfortunately, hospitals eventually have to compensate former staff even when many of those dismissals were legitimate.
Failure to follow all the proper steps in hiring and firing can make that outcome more likely, and Lyncheski says an employer’s insensitive handling of a dismissal can prompt a costly lawsuit that might not have been filed if the situation had been handled better.
Inform employee of reason for dismissal
Lyncheski offers these true examples of how not to handle dismissals within your health care organization:
• A finance director had worked her way up the corporate ladder in more than 20 years at the company. The outplacement director advised hospital leaders to give no reason for her dismissal and have her escorted from the premises. Though the hospital offered a generous severance package, she rejected the severance and outplacement services, choosing instead to sue for wrongful termination.
"It really was a legitimate dismissal, but because they wouldn’t tell her anything about their reasons, she thought there must be some hidden motive. I don’t think that’s unreasonable for a person in that situation to think," he says. "They settled for $50,000."
• In two other cases, fired employees alleged "defamation by action" when they were forced to pack their belongings in the presence of co-workers and then were escorted to their cars. Their employers settled.
• A pharmacy sales representative was fired in a public restaurant and then followed home so his car and samples could be retrieved.
"They left him standing there in his driveway, watching them drive away with his car and his job," Lyncheski says. "So this 50ish guy sues for age discrimination and public humiliation. He got $8 million, including punitive damages."
• An executive was fired for absenteeism on Bring Your Child to Work Day. His child actually saw him get fired before they both had to leave the office.
"You know the legal term for that? Stupid!’" he says. "Absenteeism cases are some of the cleanest dismissals, and they screwed it up in a big way."
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