Legal Risk And Opportunity Paper

Legal Risk and Opportunity in Employment

May 29, 2011

Legal Risk and Opportunity in Employment

Organizations often find situations arise where action or inaction leads to costly litigation. Pursuing the correct course of action is necessary to reduce the risk involved in employment while improving the opportunity to demonstrate a compliant organization.

NewCorp currently has three pending legal encounters and needs clarification on potential liability. Furthermore, NewCorp must determine what regulatory, compliance requirements and legal principles are relevant to aforementioned legal encounters. Considering current statutory and case are relevant will allow for an appropriate response and defense of the impending litigation.

Legal Encounter One

The scenario has Pat relocating to Vermont for a new position. Pat sold his home and his wife quite her job to look for new work in Vermont. After 90 days Pat was let go without any performance or corrective action as is policy according to NewCorp's employee handbook. Pat does recognize he signed the handbook acknowledgement form in the handbook stating NewCorp was an "at-will" employer. Pat feels this termination is the result of a comment he made at the school board meeting, which was unpopular.

The liability faced by NewCorp is unlawful termination based on breach of contract to perform duties upon moving to Vermont; disparate impact on a protected class. NewCorp's own handbook lays out a clear process for managing performance problems through corrective action. These policies were not enforced and Pat was terminated without cause or reason. Being an "at will" state does not protect NewCorp from wrongful discharge suit.

The Equal Employment Opportunity Commission (EEOC) enforces all legal, statutory and legal requirements; all employees are to be treated without discrimination and be able to sue if discriminated against (EEOC, 2011). The law behind this commission is the Civil Rights Act (CRA) of 1964.

Within the CRA is Title VII which scope of coverage extends to employers with 15 or more employees, employment agencies, labor unions with 15 members or more, state, local and federal agencies, and all agencies. This includes but is not limited to hiring and firing an employee. The EEOC can bring suit on plaintiff's behalf once the complaint is filed. If the EEOC investigates and chooses not to sue, the complainant may now pursue litigation. Mediation would be highly recommended.

Legal Encounter Two

This scenario has Sam beginning to date or develop a relationship with a subordinate at NewCorp. Once the relationship ended Sam displayed unwelcome behavior towards the subordinate. The subordinate express her desire for Sam to stop the unwanted behavior but it did not. The subordinate requested a transfer and Sam decline it for pregnancy concerns. The subordinate feels this is illegal discrimination

The liability faced by NewCorp is sexual harassment, sexual discrimination and retaliation. Other liabilities faced here are gender discrimination and hostile work environment. NewCorp must take immediate action to reduce risk with this employee. NewCorp has not followed the company's policy that is in place and have failed to train management consistently on sexual harassment in the workplace. It is unclear whether or not there was a no dating policy incorporated at NewCorp.

The Civil Rights Act of 1964 under Title VII prohibits discrimination based on sex. The Equal Employment Opportunity Commission (EEOC) enforces all legal, statutory and legal requirements; all employees are to be treated without discrimination and be