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EMPLOYMENT PITFALLS Hiring and Firing Employees Mary Elizabeth “Betsy” Davis Spotts Fain Chappell & Anderson, P.C. 411 E. ...
Overview <ul><li>Federal Statutes </li></ul><ul><li>Hiring Employees </li></ul><ul><ul><li>Religious Discrimination  </li>...
Overview Cont. <ul><li>Terminating Employees </li></ul><ul><ul><li>Pre-termination considerations </li></ul></ul><ul><ul><...
Federal Statutes <ul><li>Civil Right Act of 1964 (Title VII): prohibits employment discrimination on the basis of race, co...
Hiring Employees
Avoid Violation <ul><li>To avoid violating these federal statutes, an employer should make no pre-employment inquiry about...
The Interview <ul><li>All requests for information must be related to the job. </li></ul><ul><li>Ask all applicants the sa...
Title VII --Religion <ul><li>EEOC guidelines on religious discrimination prohibit pre employment inquiries into an applica...
Questions Prohibited on  Religious Bases <ul><li>“ What is your religion?” </li></ul><ul><li>“ Can you work on Fridays, Sa...
Title VII – National Origin <ul><li>EEOC guidelines on national origin discrimination prohibit pre employment inquiries in...
Questions Prohibited on National  Origin Bases <ul><li>How or where did you learn to speak Spanish? </li></ul><ul><li>Is I...
Title VII --Sex <ul><li>Asking an applicant’s marital status may expose an employer to charges of sex discrimination.  </l...
Questions Prohibited on the  Bases of Sex <ul><li>Do you have any children? </li></ul><ul><li>Do you pay or receive alimon...
Title VII – Sex (Pregnancy) <ul><li>EEOC guidelines state that a written or unwritten employment policy or practice that e...
Prohibited Questions on the  Bases of Sex (Pregnancy) <ul><li>Do you have any children? </li></ul><ul><li>Are you pregnant...
ADEA - Age <ul><li>ADEA forbids discrimination based on age.  </li></ul><ul><li>Questions about age may deter older applic...
Questions Prohibited on the  Bases of Age <ul><li>When did you graduate from college/high school ? </li></ul><ul><li>How o...
ADA -- Disabilities   <ul><li>A central focus of the ADA is to eliminate barriers to employment in the hiring process for ...
Questions Prohibited on the  Bases of Disability <ul><li>Have you ever had or been treated for any of the following condit...
Prohibited Disability  Questions Cont. <ul><li>How many days were you absent from work because of illness last year?  </li...
Permissible Questions  Under the ADA <ul><li>If an individual has a  known  disability, “How will the job functions will b...
Terminating Employees
Pre-Termination Concerns <ul><li>Handbook </li></ul><ul><li>Past Evaluations </li></ul><ul><li>Disciplinary Actions </li><...
Handbooks <ul><li>Spell out what the employer expects of its employees and what the employee can expect form the employer....
Document, Document, Document <ul><li>Employment at will rule:  In Virginia employees may be terminated “for a good reason,...
Review the File <ul><li>Prior to making a termination decision, review your file. </li></ul><ul><li>Frequently, file refle...
Termination Meeting <ul><li>Meet in private, with a witness  present. </li></ul><ul><li>Prepare a statement. </li></ul><ul...
Termination Issues   <ul><li>Employer obligations to the departing employee </li></ul><ul><li>Protecting the business inte...
COBRA <ul><li>Consolidated Omnibus Budget Reconciliation Act (COBRA) </li></ul><ul><ul><li>Employees covered by employment...
COBRA Continuation Coverage <ul><li>Must be identical to coverage provided under to similarly situated beneficiaries who h...
Payment of Wages to  Terminated Employees <ul><li>Upon termination, employees shall be paid all wages/salaries due for wor...
Payment of Wages to  Terminated Employees Cont. <ul><li>An employer may not withhold any part of an employees wages (excep...
Reference Checks <ul><li>Confirm:  </li></ul><ul><ul><li>dates of employment  </li></ul></ul><ul><ul><li>position held by ...
Releases <ul><li>Should the employer obtain a release/enter into a severance agreement upon termination? </li></ul><ul><ul...
Consideration for Release <ul><li>“ Consideration:” The departing employee must receive something to which he or she was n...
Federal and State Statutes <ul><li>Title VII of the Civil Rights Act </li></ul><ul><li>Age Discrimination in Employment Ac...
Release Specifics <ul><li>Advise the employee to consult an attorney </li></ul><ul><li>Provide employee 21 days to conside...
Three Things to Remember <ul><li>Ask all applicants for the same position the same questions. </li></ul><ul><li>Document e...
EMPLOYMENT PITFALLS Hiring and Firing Employees Betsy Davis Spotts Fain Chappell & Anderson PC [email_address]
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Employee Pitfalls Hiring And Firing Employees

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Transcript of "Employee Pitfalls Hiring And Firing Employees"

  1. 1. EMPLOYMENT PITFALLS Hiring and Firing Employees Mary Elizabeth “Betsy” Davis Spotts Fain Chappell & Anderson, P.C. 411 E. Franklin Street Richmond, Virginia 23219 804-788-1190 [email_address] © Copyright 2004
  2. 2. Overview <ul><li>Federal Statutes </li></ul><ul><li>Hiring Employees </li></ul><ul><ul><li>Religious Discrimination </li></ul></ul><ul><ul><li>National Origin Discrimination </li></ul></ul><ul><ul><li>Sex Discrimination </li></ul></ul><ul><ul><li>Age Discrimination </li></ul></ul><ul><ul><li>Disability Discrimination </li></ul></ul>
  3. 3. Overview Cont. <ul><li>Terminating Employees </li></ul><ul><ul><li>Pre-termination considerations </li></ul></ul><ul><ul><li>Termination meeting </li></ul></ul><ul><ul><li>Termination issues </li></ul></ul><ul><ul><li>Reference Checks </li></ul></ul><ul><ul><li>Releases </li></ul></ul>
  4. 4. Federal Statutes <ul><li>Civil Right Act of 1964 (Title VII): prohibits employment discrimination on the basis of race, color, religion, national origin and sex. </li></ul><ul><li>Age Discrimination in Employment Act (ADEA): prohibits employment discrimination based on age. </li></ul><ul><li>Americans with Disabilities Act (ADA): prohibits discrimination against people with disabilities in the hiring process. </li></ul>
  5. 5. Hiring Employees
  6. 6. Avoid Violation <ul><li>To avoid violating these federal statutes, an employer should make no pre-employment inquiry about an employee’s race, color, religion, national origin, sex, age or disability or request information that is likely to elicit information about these areas : </li></ul><ul><li>On application forms; </li></ul><ul><li>In job interviews, or </li></ul><ul><li>In background or reference checks. </li></ul>
  7. 7. The Interview <ul><li>All requests for information must be related to the job. </li></ul><ul><li>Ask all applicants the same questions. </li></ul><ul><li>If the applicant volunteers information which would be illegal to request, the employer may not use that information as a basis for rejecting the applicant. </li></ul><ul><li>Liability for discrimination exists, regardless of whether the information was unlawfully solicited or volunteered. </li></ul>
  8. 8. Title VII --Religion <ul><li>EEOC guidelines on religious discrimination prohibit pre employment inquiries into an applicant’s availability for work or the necessity to accommodate the individual for religious practices. </li></ul>
  9. 9. Questions Prohibited on Religious Bases <ul><li>“ What is your religion?” </li></ul><ul><li>“ Can you work on Fridays, Saturdays or Sundays?” </li></ul><ul><li>Comments regarding the religious affiliation of a school attended by the applicant. </li></ul><ul><li>Comments on religious jewelry worn by an applicant. </li></ul>
  10. 10. Title VII – National Origin <ul><li>EEOC guidelines on national origin discrimination prohibit pre employment inquiries into the follow areas: </li></ul><ul><li>Citizenship </li></ul><ul><li>Fluency in English </li></ul><ul><li>Questions about an applicant’s foreign training or education </li></ul>
  11. 11. Questions Prohibited on National Origin Bases <ul><li>How or where did you learn to speak Spanish? </li></ul><ul><li>Is Italian your native language? </li></ul><ul><li>That sounds like an Irish name. Is that your background? </li></ul><ul><li>Were your parents born in this country? </li></ul><ul><li>Your resume says you spent a year in Israel. Are you Jewish? </li></ul>
  12. 12. Title VII --Sex <ul><li>Asking an applicant’s marital status may expose an employer to charges of sex discrimination. </li></ul><ul><li>EEOC guidelines on sex discrimination state that a hiring policy which forbids or restricts the employment of married women and does not apply to married men is sex discrimination prohibited by Title VII. </li></ul>
  13. 13. Questions Prohibited on the Bases of Sex <ul><li>Do you have any children? </li></ul><ul><li>Do you pay or receive alimony or child support? </li></ul><ul><li>Who will take care of your children while you work? </li></ul><ul><li>Do you have a family? </li></ul><ul><li>Are you gay? </li></ul><ul><li>Are you living with someone? </li></ul><ul><li>Will you leave this job if your husband is transferred? </li></ul><ul><li>Will your husband move if we transfer you? </li></ul>
  14. 14. Title VII – Sex (Pregnancy) <ul><li>EEOC guidelines state that a written or unwritten employment policy or practice that excludes applicants or employees because of pregnancy, childbirth, or related medical conditions is a prima facie violation of Title VII. </li></ul>
  15. 15. Prohibited Questions on the Bases of Sex (Pregnancy) <ul><li>Do you have any children? </li></ul><ul><li>Are you pregnant? </li></ul><ul><li>Do you have or plan to have a family? </li></ul><ul><li>Do you intend to become pregnant? </li></ul><ul><li>Do you anticipate needing time off to have a baby? </li></ul><ul><li>How much time would you expect to take off if you were to have a baby? </li></ul><ul><li>What would you do if you were to become pregnant? </li></ul><ul><li>Do you practice birth control? </li></ul><ul><li>Have you ever had an abortion? </li></ul><ul><li>Have you ever had or do you now have any female problems? </li></ul><ul><li>Have you ever been pregnant? </li></ul>
  16. 16. ADEA - Age <ul><li>ADEA forbids discrimination based on age. </li></ul><ul><li>Questions about age may deter older applicants or otherwise indicate discrimination based on age. </li></ul><ul><li>Any question that is calculated to elicit information about a person’s age should be avoided during interviews. </li></ul>
  17. 17. Questions Prohibited on the Bases of Age <ul><li>When did you graduate from college/high school ? </li></ul><ul><li>How old are your children? </li></ul><ul><li>When were you discharged from the service? </li></ul><ul><li>Do you get any social security income? </li></ul><ul><li>Are you receiving pension benefits? </li></ul><ul><li>Are your parents [grandparents] still living? </li></ul><ul><li>How far away from retirement are you? </li></ul><ul><li>How many years do you think you will give to this job? </li></ul>
  18. 18. ADA -- Disabilities <ul><li>A central focus of the ADA is to eliminate barriers to employment in the hiring process for individuals with disabilities. </li></ul><ul><li>To accomplish that goal, the ADA establishes a two-stage hiring process that permits a limited inquiry into and use of medical information, but only after a conditional offer of employment has been extended. </li></ul>
  19. 19. Questions Prohibited on the Bases of Disability <ul><li>Have you ever had or been treated for any of the following conditions or diseases? </li></ul><ul><li>Have you ever been hospitalized? If so, for what condition? </li></ul><ul><li>Have you ever been treated by a psychiatrist or psychologist? If so, for what condition? </li></ul><ul><li>Is there any health-related reason why you may not be able to perform the job for which you are applying? </li></ul><ul><li>Have you had a major illness in the last 5 years? </li></ul>
  20. 20. Prohibited Disability Questions Cont. <ul><li>How many days were you absent from work because of illness last year? </li></ul><ul><li>Do you have any physical defects that preclude you from performing certain kinds of work? Are you taking any prescribed drugs? </li></ul><ul><li>Have you ever been treated for drug abuse/addiction or alcoholism? </li></ul><ul><li>Will/do you need reasonable accommodation to perform this job? </li></ul><ul><li>Have you ever filed for workers’ compensation insurance? </li></ul>
  21. 21. Permissible Questions Under the ADA <ul><li>If an individual has a known disability, “How will the job functions will be performed, with or without an accommodation. </li></ul><ul><li>“ Did you have records of attendance with prior employers?” </li></ul><ul><li>“ Have you ever used illegal drugs?” </li></ul><ul><li>An employer may give applicants tests to detect the illegal use of controlled substances. </li></ul><ul><li>“ Have you ever been arrested for driving under the influence of alcohol?” </li></ul>
  22. 22. Terminating Employees
  23. 23. Pre-Termination Concerns <ul><li>Handbook </li></ul><ul><li>Past Evaluations </li></ul><ul><li>Disciplinary Actions </li></ul><ul><li>Employee File Documents </li></ul>
  24. 24. Handbooks <ul><li>Spell out what the employer expects of its employees and what the employee can expect form the employer. </li></ul><ul><li>Offer employer defense to certain claims: </li></ul><ul><ul><li>Sexual harassment </li></ul></ul><ul><ul><li>FLSA, policy to record hours </li></ul></ul><ul><li>If policies are followed, employers can avoid desparate impact claims. </li></ul><ul><li>Danger: Not following policies. </li></ul>
  25. 25. Document, Document, Document <ul><li>Employment at will rule: In Virginia employees may be terminated “for a good reason, a bad reason of no reason at all.” </li></ul><ul><li>In reality, every termination case, jury expects employer to explain the reason for termination. </li></ul><ul><li>Jury’s view: “If it was important, it would have been written down.” </li></ul>
  26. 26. Review the File <ul><li>Prior to making a termination decision, review your file. </li></ul><ul><li>Frequently, file reflects satisfactory performance. </li></ul><ul><li>Maintaining accurate and up to date records of employee discipline and counseling will show that the employee was aware of the problem. </li></ul><ul><li>Jurors expect employees to have an opportunity to correct the problem. </li></ul>
  27. 27. Termination Meeting <ul><li>Meet in private, with a witness present. </li></ul><ul><li>Prepare a statement. </li></ul><ul><li>Not required to give the employee a reason for termination. </li></ul><ul><li>If a reason is given, offer only legitimate reasons. </li></ul><ul><li>Decide in advance whether the employee will be asked to leave immediately or will be allowed to remain during a transition period: </li></ul><ul><ul><li>Position, access to confidential information </li></ul></ul><ul><ul><li>Reason for termination </li></ul></ul><ul><ul><li>Ability to harm employers business. </li></ul></ul>
  28. 28. Termination Issues <ul><li>Employer obligations to the departing employee </li></ul><ul><li>Protecting the business interests of the employer </li></ul>
  29. 29. COBRA <ul><li>Consolidated Omnibus Budget Reconciliation Act (COBRA) </li></ul><ul><ul><li>Employees covered by employment-related group health plan </li></ul></ul><ul><ul><li>Opportunity to continue health benefits </li></ul></ul><ul><ul><li>At employees expense </li></ul></ul><ul><ul><li>Upon occurrence of some “qualifying event” (i.e. termination) </li></ul></ul>
  30. 30. COBRA Continuation Coverage <ul><li>Must be identical to coverage provided under to similarly situated beneficiaries who have not experienced a qualifying event </li></ul><ul><li>Must continue for a period of 18 months after the date of termination </li></ul><ul><li>Employees have 60 days from termination to elect COBRA coverage </li></ul><ul><li>May require a premium to be paid by the employee of not more than 102% of applicable premium </li></ul>
  31. 31. Payment of Wages to Terminated Employees <ul><li>Upon termination, employees shall be paid all wages/salaries due for work performed prior to termination. </li></ul><ul><li>Payment shall be made on or before the date on which the employee would have been paid had he not been terminated </li></ul><ul><li>Employer who knowingly fails to make payment shall be subject to a civil penalty not to exceed $1,000 per violation </li></ul><ul><li>Va. Code sec. 40.1-29(a)(1) </li></ul>
  32. 32. Payment of Wages to Terminated Employees Cont. <ul><li>An employer may not withhold any part of an employees wages (except for payroll wage or withholding taxes) without the written and signed authorization of the employee </li></ul><ul><li>Va. Code sec. 40.1-29(a)(2) </li></ul>
  33. 33. Reference Checks <ul><li>Confirm: </li></ul><ul><ul><li>dates of employment </li></ul></ul><ul><ul><li>position held by individual </li></ul></ul><ul><li>Do not answer questions regarding: </li></ul><ul><ul><li>Whether the employee was a good employee </li></ul></ul><ul><ul><li>Whether the employee is eligible for rehire </li></ul></ul>
  34. 34. Releases <ul><li>Should the employer obtain a release/enter into a severance agreement upon termination? </li></ul><ul><ul><li>Level of employee </li></ul></ul><ul><ul><li>Employee compensation </li></ul></ul><ul><ul><li>Likelihood of litigation </li></ul></ul><ul><ul><li>Length of service of the employee </li></ul></ul><ul><ul><li>Potential for public release of damaging information </li></ul></ul><ul><ul><li>Impact on remaining employees and business </li></ul></ul>
  35. 35. Consideration for Release <ul><li>“ Consideration:” The departing employee must receive something to which he or she was not otherwise entitled </li></ul><ul><li>Compensation in exchange for release of the company from liability for all claims know or unknown </li></ul><ul><li>Specific release, thoroughly listing all federal, state and local laws included in the release </li></ul>
  36. 36. Federal and State Statutes <ul><li>Title VII of the Civil Rights Act </li></ul><ul><li>Age Discrimination in Employment Act </li></ul><ul><li>American With Disabilities Act </li></ul><ul><li>Fair Labor Standards Act </li></ul><ul><li>Employee Retirement Income Security Act </li></ul><ul><li>Consolidated Omnibus Budget Reconciliation Act </li></ul><ul><li>Virginia Human Rights Act </li></ul><ul><li>Causes of Action based on the common law of Virginia </li></ul>
  37. 37. Release Specifics <ul><li>Advise the employee to consult an attorney </li></ul><ul><li>Provide employee 21 days to consider and 7 days to revoke acceptance of severance agreement </li></ul><ul><li>ADEA 29 U.S.C. sec. 626 </li></ul>
  38. 38. Three Things to Remember <ul><li>Ask all applicants for the same position the same questions. </li></ul><ul><li>Document employee misconduct and counseling – EVERY TIME. </li></ul><ul><li>Ask a witness to attend all termination meeting. </li></ul>
  39. 39. EMPLOYMENT PITFALLS Hiring and Firing Employees Betsy Davis Spotts Fain Chappell & Anderson PC [email_address]
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