It seems that labor and employment law cannot stay of the news headlines for very long. The US Supreme Court recently ruled in a nationwide discrimination class action lawsuit, one of the largest discrimination suits in history. The lawsuit represented over 1.5 million women who claimed that had been discriminated against. After working its way up through the judicial system, the Supreme Court eventually heard the case and turned down the lawsuit. They stated the class action lacked a cohesive claim to bind them together as a class action. This landmark decision addresses several important issues relating to all class action lawsuits, and provides important insights towards implementing human resources best-practices.
The case clearly impacts the way employers address human resources practices, and other HR policies and procedures. Even if a company has recently updated its employee manual and management practices, they should once again review these policies in light of the Supreme Court decision.
Below are seven important take-aways that employers should consider implementing to comply with EEOC anti-discrimination policies. Putting these actions into place will help to protect them against future class actions, as well as other discrimination related lawsuits.
- Carefully review pay and promotion policies to determine whether or not they could be misconstrued as favoring one class over another.
- Eliminate all subjective decision-making processes by clearly linking promotions, demotions, raises or bonuses to objective goals and job performance.
- Ensure that all managers who are tasked with performance appraisals are properly trained on the relevant labor laws, proper employment practices and appropriate decision making processes.
- For those employees who have been turned down the possibility of a promotion, or who were denied a raise, consider implementing an appeal process.
- Investigate, and implement, other corporate policies with the purpose of increasing diversity in the workplace, and preventing discriminatory practices.
- Continue to train and communicate corporate policies to the staff, particularly in the areas addressing anti-discrimination practices, career growth opportunities, and the ability to access further education.
- Take employee complaints seriously, document your response and follow up, and be sure to address each issue on its own individual merits.
As we have witnessed time and again, the playing field of labor and employment law continues to change and evolve. The rules are not static, and employers must make all efforts to remain abreast to these changes, and recognize how they impact their human resources practices in the workplace. When in doubt, prior to making any employment decision, it always recommended to consult with a human resources expert or labor attorney. The short-term cost will be well spent in protecting against long-term expenses.
Ari Rosenstein is the Director of Marketing at CPEhr, a human resource consulting firm, specializing in labor law compliance and PEO services. It currently services 15,000 employees and hundreds of clients nationwide. CPEhr was founded in 1982 and assists small employers with the management of their employees and compliance with employment regulations.
Services include: – HR Compliance – Human Resources Administration – Legislative Compliance – Employee Benefits – Risk Management and Workers’ Compensation – Payroll and Tax Administration – Management and Employee Training – Recruiting Services
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