AMERICA, THE CONTENTIOUS?

Why Municipalities Need Lawsuit Protection
By GAYLON G. SMITH

America has become a contentious, litigous country. The records show that employees today are phenomenally more litigous. It seems just about everybody is trying to rip off some money whenever they get offended.

Everyone has "rights". More and more laws are passed to protect these "rights". ADA, EEOC, AGE, EQUAL PAY, FAMILY AND MEDICAL ... We could go on. The odds are high you will be sued soon.

LAWSUITS DOUBLING EVERY YEAR

The number of employee lawsuits have doubled every year since the mid-1980s. Discrimination lawsuits now constitute one-fifth of all civil suits filed in U.S. courts.

Employers LOSE 63% of all these cases that go to court.

The average jury verdict in wrongful termination cases has averaged $602,000.

The attorney fees averaged over $100,000.

INCREASED PUNITIVE/
COMPENSATORY DAMAGES

It gets worse. The passage of the CIVIL RIGHTS ACT OF 1991 relaxed certain burdens of proof, increased compensatory and punitive damages, and gave the right to jury trials.

In jury trials, the jurors are mostly peers of the employee, not the employer. The employee's point of view usually prevails.

OVERCROWDED LEGAL PROFESSION

There are about 740,000 lawyers in the United States, with an estimated one-third of them unemployed or under-employed. With increased damages and penalties, is there any doubt the future direction in the number of employee lawsuits is UP?

EMBARRASSING HEADLINES

Expect to see more headlines like these discrimination verdicts. Lucky Stores ($107 million). State Farm ($240 million). Boeing Company ($1.126 million). Prudential ($1.4 million). I'm sure you can add others. Imagine your City's name so headlined!

IGNORANCE OF THE LAW IS NO EXCUSE

Most employee lawsuits are the result of "not knowing" the law. There are so many laws and regulations now, it is tough to keep up. (Did you know obese people are now covered under ADA?)

Compliance Corporation of America has recently boiled all these laws down into an easy-to-read and understand manual. Their "hiring and firing" system is in lay terms with simple forms and charts. (Call 217-342-7297 for info and a free compliance checkup.)

REVIEW YOUR EMPLOYMENT PRACTICES

Review sexual harassment policies, employee handbooks, job descriptions and interview procedures. Conduct regular performance evaluations. Maintain your right to hire and fire "at will". Consider getting insurance against discrimination.

What you spend to review employment practices will be far less than what you will spend if your municipality is sued.

Gaylon G. Smith has worked with municipalities for over 20 years. He currently helps employers solve people problems, including how to bulletproof from employee lawsuits.

June 1994 / Illinois Municipal Review / Page 21