Staying out of court

Article Abstract:

Any company that is laying off employees is a potential target for litigation. Statistics show that the number of workers suing their former employers is at a record high, primarily due to the spate of downsizing that left many employees out of work. Given that more corporate restructurings are expected to be made in the near future, the number of lawsuits should rise further. Law firm Orrick, Herrington and Sutcliffe recommends a reduction-in-force (RIF) planning program that will help employers avoid litigation. The program's eight steps require preparedness in justifying an RIF, exploration of alternatives to RIF, consideration of voluntary separation programs, examination of early retirement programs, evaluation of an employee separation program, preparation for a RIF, careful implementation of RIF and consideration of post-RIF variables.

Methods, Downsizing (Management)

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At risk

Article Abstract:

A 1989 survey on equal employment opportunity (EEO) complaints was conducted by Reminger and Reminger and Personnel Journal. Some 653 Personnel Journal subscribers responded. The results indicated that 34% of the personnel managers felt that the most serious EEO issue was wrongful discharge, while nearly 18% felt that the most common issue was race discrimination. The greatest number of wrongful discharge complaints was in the health services industry, while race discrimination complaints were most common in government organizations. Over 44% of the firms did not have adequate liability insurance to cover employee discrimination, and only 38% employed a risk manager. Wrongful discharge cases received the greatest percentage of awards, with 53% of all cases resulting in damages being awarded.

Surveys, Employment discrimination, Personnel Journal (Periodical), Reminger and Reminger Company L.P.A.

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Hiring ruled contractual

Article Abstract:

The Dec 29, 1988 California court ruling in the wrongful termination case of Foley vs. Interactive Data Corp resulted in the elimination of punitive damages for wrongfully fired employees. The ruling stipulated, however, that employment relationships are contracts, and that most employees now have the right to sue for breach of contract should they be fired without just cause.

Breach of contract, Foley, Daniel, Interactive Data Corp.

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