ISRI Annual Convention: You’re Fired!

The simple process of hiring and firing employees can leave scrap yard managers exposed to a number of legal liabilities, according to Victor Cardwell, a management attorney for Woods Rogers PLC, Roanoke, Va.

Sticking to objective facts and strict documentation are ways managers can protect themselves from discrimination lawsuits and harassment claims, Cardwell said in a presentation he gave on hiring and firing at the ISRI National Convention, which was April 13-16 in New Orleans.

“It’s all about documentation,” Cardwell said, noting that a company’s application is its first line of defense.

Cardwell advised that every application should contain the following: a signed authorization for the release of reference checks, a clause where the applicant agrees to appropriate authorization for drug screening and criminal record checks, an equal opportunity employer statement and a statement of the consequences for providing misinformation or incomplete information.

Cardwell also advised to avoid language on applications that could be read as discriminatory. For instance, he recommends using the phrase “Are you at least 18 years of age? If not, we will require appropriate work permits” as opposed to simply asking “How old are you?” to avoid claims of age discrimination.

Cardwell also said to take care to avoid asking questions during a job interview that could be turned around in a discrimination claim should an applicant decide to sue after being passed over for a job.

He advised to take notes during an interview, but not on the original application. Cardwell also recommended being careful of the content of written comments—asking managers to keep in mind that their comments could be used as evidence in litigation.

Certain questions should be off-limits during an interview to guard against possible discrimination claims, Cardwell said. He advised to avoid all questions relating to an applicant’s religious affiliation. If weekend work is required, Cardwell said simply to ask if the applicant is able to work the days in question. He also said to avoid questions about marital status and pregnancy or childcare.

Managers should also take care when providing references for a former employee, Cardwell said. “Employee issues are all interrelated,” he said. “The relationship you have with people who are not your employees can still have legal ramifications.”

When called by another company performing a reference check on a former employee, Cardwell recommended remaining as objective as possible, simply stating that the person did work there and between what dates. “Every step you take beyond [neutral references] leaves you open to more exposure for trouble,” Cardwell said.

The trouble could come if that former employee is rejected for a position and can trace a negative reference back to you, Cardwell said, claiming you liable for defamation or slander.

Cardwell said the safest path to avoid any potential liability is to avoid going into details of the individual’s job performance or reason for termination. “Unless you have some moral issue that makes you want to put your company on the line, I wouldn’t go further,” he said.