Jan's Journal

Think "60 Minutes" to Avoid Lawsuits
by Jan Wilson

Although 80% of U.S. businesses are family-owned, only 30% of those make it to the second generation. Luckily, family-owned businesses in this area have a strong ally in UW's Family Business Center (FBC), established in 1996 to support family businesses, the root families and employees [exed.wisc.edu/fbc]. Members enjoy educational programs, access to professionals and an important sense of fellowship.

As a guest recently at an FBC seminar titled, "Hire the Best and Fire the Rest!", I joined about 80 members who represented a number of well-ingrained business names in town including Bunbury, DeWitt (Ross & Stevens), Endres, Pertzborn, Cullen, Metcalfe, Newcomb, Ryan, Smith (& Gesteland), Gialamas, Neckerman, Welter, Wick, and Wollersheim — to name a few.

All were there to hear the day's featured presenter, Hunter Lott, director of PleaseSueMe.com, who advises small businesses on HR regulations and compliance in a lawsuit-frenzied world. With 70% of corporate lawsuits filed by disgruntled employees, Lott reminded the group that consistency and communication is key.

"While many companies exercise the right to fire 'at will,'" he said, "remember that employees can also sue at will." His point? Do all you can do to stay out of court!
"Think '60 Minutes!'" he kept repeating. In other words, establish a company protocol that could be easily defended — if necessary — on national TV, with the pressure on and a microphone in your face. And for goodness sakes, Lott said, always be mindful of wrongful discrimination toward "protected classes," including pregnancy!

The latter because, according to Lott, the largest increase in workplace lawsuits these days stem from pregnancy discrimination suits.

Following are some of Lott's other suggestions, applicable to any business, large or small:
1) The internet is a great way to investigate candidates. "Use You Tube, My Space, Facebook, and Google," Lott said, to help avoid a bad hire.
2) Ban camera-phones from the office, or have providers disable the camera feature on company-issued cell phones. Evidently, there have have been too many instances of documents being photographed — or worse — warranting the concern. Unfortunately, it seems our society has become its own "big brother."
3) When terminating someone, refrain from using the term "layoff" (unless it's a union shop) because it implies a "callback." Unless that is the intent, this type of company-to-employee miscommunication could snowball in court.
4) Regarding time off, Lott despises "use it or lose it" vacation policies, saying they are morale-busters. Vacation, he reminded the room, is earned time off, so don't get angry when employees request it. Rather, reward employees (either monetarily or otherwise ) for vacation and sick time they do not use. Just be consistent across the board.
5) At the end of a year, ask employees, "Why are you still here?" They'll appreciate it, and you'll learn a lot.

Obviously, nobody wants a disgruntled employee, but unfortunately, it happens. And though the "60 Minutes" idea might seem sophomoric, if it helps a company improve internal communications and procedures, it's better than going to court.

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