Car Dealer Insider May 15, 2006
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Car Dealer Insider May 15, 2006

Four steps for preventing termination lawsuits

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Four steps for preventing termination lawsuits

As dealership labor law expert John Donovan of Fisher & Phillips, LLC, is fond of saying, "Employment-At-Will doesn't mean what car dealers think it means anymore." To back up his assertion about At-Will employment, Mr. Donovan regales audiences with stories about the termination lawsuits former employees have filed against car dealers.

Involuntary terminations are an unpleasant, but necessary, part of every dealership manager's job. If poor performers or disruptive employees are allowed to keep working, productivity and efficiency are bound to suffer.

However, mishandled terminations can lower employee morale and lead to lawsuits. Terminating an employee can put a dealership at legal risk for liability based on discrimination and anti-retaliation laws and on tort and contract legal theories. Below is a discussion of these claims and four steps dealers can take to help prevent lawsuits.

Discrimination claims Employees often allege that their termination was illegal discrimination based upon their status as members of a protected class. A dealership's liability for alleged discrimination may arise from a number of federal or state statutes, including Title VII of the Civil... (180 of 719 words)

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