E-MAIL THIS PAGE TO A COLLEAGUE
Enter recipient's e-mail:

Resources for HR executives who wish to help their company with new resources ...
Executive Info Kit


HR THAT WORKS!

For companies with 15 - 500 employees. 

CONTACT:
Don Phin
800-234-3304
don@hrthatworks.net

HR That Works Site

Lawsuit Free!
How to Prevent Employee Lawsuits
[More about the program]

HR THAT WORKS INCLUDES:

Online access to Audio files
Lawsuit Free! Program
Personnel Forms 
HR Audit
Special Reports
Training Modules
Quizzes
Knowledge Survey
And more!

Web site
hrthatworks.net



What Others Are Saying:

"Superb, cutting edge material ... low on verbiage and high on readily applicable techniques"."

Robert Bregman
Senior Research Analyst,
Insurance Risk Management Institute

Executive Summary

1. Every Businessperson's Worst Nightmare — Nothing short of embezzlement can ruin a business as quickly as a lawsuit by a disgruntled former employee. One out of five civil court cases today is employment-related, and a typical business is much more likely to be sued by a former employee than audited by the IRS. With damage awards in such cases averaging $250,000, and nonrecoverable expenses of legal defense averaging about $100,000, knowing how to avoid destructive employee lawsuits has become a vital skill for every business person.

[More: Employee lawsuits in a nutshell]

2. Compliance in Cyberspace — Don Phin, attorney and president of Employer Advisors Network, Inc. (EAN), became an Internet pioneer when he realized that employment law know-how could be distributed much more effectively and economically via the World Wide Web. Although he cautions that online information should not be considered a substitute for consulting an attorney when specific legal problems arise, he says the information, strategies and tools presented on the EAN web site can cut legal expenses dramatically and prevent more than half of the employee lawsuits filed in the United States. Could this be the future of the legal compliance?

[More: Keeping your clients out of court]

3. The Secret to Preventing Employee Lawsuits — Compliance with the labyrinthine requirements of employment law means that an employer is unlikely to lose a discrimination, sexual harassment or other employment case at trial. But one key point that veteran employment lawyer Don Phin emphasizes in his workshops, seminars and HR That Works! materials is that defending a lawsuit can be an expensive proposition even if you win! The real secret to avoiding legal problems, Phin says, is to build powerful, positive employment relationships right from the day of hiring.

More: Avoiding Legal Problems

4. Beyond the Law: Holistic Employee Management — For Don Phin, the transformation from trial lawyer to risk management expert, author and speaker has been a journey of personal growth. He quit litigation with the idea of helping business people protect themselves from the same kinds of lawsuits he had been filing on behalf of employees. As he gained enough distance to take an objective look at the at the adversary system of civil justice, it dawned on him that employment relations need not be a win-lose game. Today his focus is on teaching holistic, win-win business strategies that combine an understanding of the law with positive psychological insights designed to keep employer-employee conflicts from arising in the first place.

More: Holistic Employee Management

Building Powerful Employee Relationships!

"Your book is thought-provoking and encouraged me to look at new ways of doing things. It reflects values regarding dignity and respect for people and their relationships"

Keith Michaelis
Programs,
National Human Resources Society

The Facts

1. Employee Lawsuits in a Nutshell — At least four out of five legal actions by employees against employers fall into the categories of discrimination, wrongful termination or sexual harassment.

Employees are protected against discrimination based on race, creed, color, national origin, marital status, medical condition, sexual orientation or preference, religion, age, physical and/or mental disabilities or pregnancy under the following federal laws:

  • Title VII of the Civil Rights Law of 1964

  • Age Discrimination in Employment Act of 1967

  • Equal Pay Act

  • Rehabilitation Act of 1973

  • Pregnancy Discrimination Act of 1978

  • Americans with Disabilities Act of 1990

  • Older Workers Benefit Protection Act of 1990

  • Civil Rights Act of 1991

  • Family and Medical Leave Act of 1993
Employment discrimination complaints can be filed either with the court system or with the Equal Employment Opportunity Commission (EEOC) and its state equivalents.

More employees and their attorneys elect to bypass the EEOC hearing process and file their complaints in court, where money judgments can be much higher because of punitive damage awards. In addition, the high legal expenses of pretrial discovery, motions and trial make it more likely that the defendant employer will pay an out-of-court settlement even in a case where the company would probably not be found liable in a trial. Attorneys fees can easily cost more than $100,000 to defend a discrimination claim and the verdicts are staggering. Even a nuisance claim can easily cost $30,000+ to settle.

Wrongful termination is one of the most common grounds for employee lawsuits. Even though the general rule is that employees can be fired at will — at any time, for any reason, with or without cause and with or without notice— the courts have recognized so many exceptions that they swallow the general rule. If an employer makes statements at the time of hiring an employee that can be construed as promises of permanent employment, for example, the court can find an implied contract protecting the employee from being fired at will. Since wrongful termination laws include "constructive discharge, " where the employee's work environment becomes so hostile that he or she is forced to resign for financial, physical or emotional well-being, wrongful termination often becomes an issue in sexual harassment, discrimination and whistle-blowing cases.

Sexual harassment lawsuits are among the most common and most lucrative cases in the legal system today, often resulting in punitive damage awards exceeding $1 million. They fall into two categories — "quid pro quo harassment" (where sexual contact is made a condition of employment) and "hostile environment harassment" (where verbal, visual or physical conduct of fellow employees creates an intimidating, hostile or offensive working environment). Even though the employer may have nothing to do with the harassment—and may not necessarily be aware of it--the business can be held liable for failing to prepare, distribute, publicize and enforce a written policy against sexual harassment, or for failing to educate employees about exactly what constitutes sexual harassment, or for failing to investigate complaints and take appropriate action.

Personnel forms and special reports designed to protect employers from charges of discrimination, wrongful termination, sexual harassment and other common employee lawsuits are available at the
HR That Works! web site. Many can be downloaded for free. Among the additional tools included in the HR That Works! program is a unique Compliance and Productivity Audit, which helps employers find out where they may be vulnerable to employee lawsuits and tells what steps they can take to protect themselves. Other compliance materials include training presentations, quizzes and complete forms, checklists and guidelines for investigating complaints can be viewed at www.hrthatworks.net

Lawsuit Free!
How to Prevent Employee Lawsuits

2. Compliance in Cyberspace: HR That Works

The Employer Advisors Network's HR That Works! program is designed for companies with that do not have full-time employment law experts on staff. It helps cut through the overwhelming sea of legal information so that a company can master the nuts and bolts of employment compliance obligations. To watch a 15 minute demo, click here. To read a summary of its benefits and features, click here.

3. The Secret to Preventing Lawsuits

The fundamental premise of the HR That Works! program is that compliance with the law, by itself, is no guarantee against litigation. A great number of sexual harassment, discrimination and wrongful termination claims are filed out of ignorance, because even when the employer is well informed on the law, employees may not be. One key to building powerful employment relationships from the outset is to educate employees. Among the HR That Works! tools to accomplish this are:

  • Compliance Program FAQ--provides managers and employees an overview of the who, what and why surrounding a sound prevention approach.

  • 50-question Compliance Quiz--to raise employee awareness of compliance exposures and foster dialogue for its prevention.

  • Employee Handbook—encourages understanding of company policies on a wide range of issues such as nonharrassment, drug and alcohol use, employee dating, privacy/right to inspect, voice mail and Internet use, vacations and paid time off, and complaint procedures.
  • Employee Compliance Survey - the single most powerful lawsuit prevention tool ever!
  • Sexual Harassment Training Module - includes online presentations, Powerpoints, reports, quiz and audits. 
Communication between employer and employees is an ongoing essential. Among the HR That Works tools for keeping the lines of communication open are:
  • 60-Day New Employee Survey—sometimes new employees, with outside perspectives, can provide the best insights into your company's operations.

  • Employee Suggestion Form— let's employers tap into workers' powers of observation and detailed knowledge of the workplace.
  • Employee Knowledge Survey—helps tap into the collective wisdom of your workforce.

  • Performance Improvement Forms, Peer Improvement Form and Supervisor Improvement Form
These are a sampling of the HR That Works tools that can help build a working environment in which conflicts are less likely to arise in the first place--the best possible lawsuit prevention strategy. For a complete listing and description of over 190 such forms and tools available to employers, visit
www.hrthatworks.net/LFFormsDescription.aspx

4. Beyond the Law: Holistic Employee Management

"When I came out of law school," Don Phin tells audiences in his seminar and workshop presentations, "I figured I could be a hero by helping poor, victimized workers fight back against their villainous, abusive bosses. Grinding into the wee hours of the night is expected when you are playing the hero role. And sure, I made a lot of companies burn up a lot of money in legal fees and put six-figure settlements in my clients' pockets. But then one day the reality hit me: many of these clients blew the money within three years, just as lottery winners do. Is that what all my sacrificing was for?"

When Don Phin began easing out of his lucrative but high-stress employment litigation practice in favor of a new career as a legal consultant to management, his first instinct was to offer advice on how to avoid lawyers and head off litigation—to show employers how to fight back against the kinds of complaints he had been filing on behalf of his employee clients for more than a decade.

Talking with hundreds of executives and managers in public speaking appearances and writing his first book, Lawsuit Free!, Phin realized that the current fear-based approach to employment conflicts left a lot to be desired. The standard lawyerly advice ("Cover your ass—and get it in writing") wasn't all that helpful in cultivating enthusiastic employees instead of disgruntled ones.

Phin's philosophy evolved and grew more positive as he put more distance between himself and courts of law. In his second book, Building Powerful Employment Relationships!, he wrote, "The most critical component for today's business success is personnel management. It is the one constant in a sea of change. The failure of this relationship results in turnover, disloyalty, unproductivity and lawsuits. The mastery of it results in profitability and joy."

Easy to say, but what does mastery of personnel management really mean? Reflecting back from the turn of the new century, Don Phin realized that many workplace policies and procedures had been designed 50 years ago, or more, when management's goal was to control employees. ""Do what we tell you to do and we'll punish you when you don't. Please don't think for yourself because that's more dangerous than it could ever be helpful." Managers didn't care whether or not the employee felt good, Phin says. They only cared whether they could get workers to work hard from 9:00 'til whenever.

"But guess what," Phin says. "Now it's a new century and the whole notion of Control is Dead. Gone. Poof. Forgetaboutit! What has taken its place? The 'Birth of Feeling.' That's right, the New Age is here. The Age of the Cultural Creatives. The Age of Aquarius. It's here alright - whether we like it or not!

To be successful today, we have to create management systems that allow managers to empower the workplace and become more inclusive in the process. We can't simply tell somebody what his or her performance should be and then attempt to control that performance. We have to enlighten them to the needs of the organization and help them to 'own' and become responsible for their performance."

Strange words from a man who spent much of his adult life suing bosses for a living. Yet times change, and Don Phin is changing with them. His latest book, Victims, Villains and Heroes: Managing Emotions in the Workplace,is co-authored with Loy Young. "All the world is a stage, including the workplace," say Phin and Young. "The drama we play is 'Goodness Triumphs Over Evil.' In this drama there are only three emotional roles available--victim, villain or hero. We adopt these roles in life and at work because it is how we have learned to survive. We play out these roles both internally and externally in our relationships, the latter of course being a reflection of the former. Or, as I like to say, 'what comes to you comes from you.'"

In his workshops, Phin explains that it is the natural tendency of victims to blame others for their circumstances. "They would rather throw a pity party and wallow in their feelings than do anything about their circumstances. Because employees have traditionally been cast in the victim role, we have set up elaborate systems based on this emotional position." Such systems, he says, include performance evaluations, sick pay and disciplinary notices.

"We have to understand that unless we address their emotional energy, employees will continue to play their victim role and blame others for their circumstances, with disastrous outcomes for employer and employee alike. We can't continue to create systems that force management to 'micro-manage' the victim mentality. In order to be successful today, we have to create management systems that empower people in the workplace and allow them to become their own hero in the process. We can't simply tell somebody what his or her performance should be and then attempt to control that performance. We have to enlighten them to the needs of the organization and help them to 'own' their performance."

"As managers," Phin says, "we have to watch the emotional compulsion to want to do too much for other people because we 'care so much.' If you try too hard, you will be in the other person's emotional space. As a result they will feel unsafe and either fight your efforts or flee from them. It is a sure road to burnout and failed relationships."



Don Phin
Specialist in pro-active and preventive measures to eliminate costly employment-related litigation

About HR That Works President Don Phin

Don Phin graduated from McGeorge School of Law at the University of the Pacific in Sacramento, California, and was admitted to the California State Bar in 1983. For the next 14 years he practiced as a litigation attorney, specializing in employees' job discrimination, wrongful termination and sexual harassment claims against employers. He helped write the California Whistle Blower Protection Act of 1986 and amendments to California Code of Civil Procedure sec. 128.5, providing sanctions for bad faith and frivolous litigation tactics.

In 1995, Phin earned his Certification as a Professional Consultant to Management (CPMC) and began a consulting practice dedicated to helping companies comply with employment laws, using tools that included audits, surveys, model personnel policies and procedures and employee handbook preparation.

In 1998, Phin expanded his consulting practice further and launched
donphin.com , a nationwide employers' information and consulting practice based on Internet and print media, public speaking and individual coaching.

Phin has presented his seminars and workshops to such organizations as the International Risk Management Institute
www.irmi.com, Insurance Marketing and Management Services www.imms.com, The Institute of WorkComp Advisors (www.workcompadvisors.com, The CEO Club www.ceoclubs.org , the Society for Human Resource Management www.shrm.org, the National Human Resources Association www.humanresources.org , Financial Executives Institute, www.fei.org , The Executive Committee www.teconline.com , and the Foundation of Enterprise Development www.fed.org. To learn more about his speaking programs, click here.

Phin is the editor of Employment Practices Liability Consultant (EPLIC), a publication of the International Risk Management Institute, and author of the monthly online e-zine Compliance and Culture www.hrthatworks.net/LFNewsltr.aspx . He is the author of the books Lawsuit Free!, How to Prevent Employee Lawsuits and Building Powerful Employment Relationships! and co-author with Loy Young of Victims, Villains and Heroes: Managing Emotions in the Workplace.