6 Big Manager Mistakes That Can Get Your Company Sued

What’s the most common reason well-meaning employers end up in court? Costly manager mistakes by front-line supervisors.

According to employment attorneys, it often comes down to avoidable mistakes made by front-line managers. From inconsistent policy enforcement to poor documentation, these missteps can quickly escalate into costly legal battles.

HR plays a crucial role in mitigating these risks by training and coaching managers to avoid these six common mistakes.

A proactive approach — things like regular check-ins, appropriate training and clear performance guidelines — can help protect your organization from unnecessary liability.

Common Manager Mistakes

Here’s what to watch for and how to address these common manager mistakes.

1. Sloppy Documentation

Documentation should never, ever seem subjective. It should always be written as if it could wind up in a jury’s hands. Common manager mistakes include setting vague expectations (e.g. “be on time”) and failing to include a time frame for improvement.

2. Inflated Performance Appraisals

Many managers avoid difficult conversations by inflating the performance ratings of employees. Company leaders who sugarcoat problems during performance reviews and then discipline workers are sending mixed messages. This manager mistake can make it impossible to justify a disciplinary decision in court. Looking for help to train your managers? Here are examples of performance reviews and sample feedback phrases.

3. Applying Policies Inconsistently

When managers don’t apply their policies to all employees, it leaves the company wide open to an array of lawsuits. For example, in West Virginia, an employee was fired after taking FMLA leave. He sued, and the case reached the Fourth Circuit. The appeals court sided with the employee. The deciding factor was one of the common manager mistakes: The supervisor bent the rules rather than applying company policies consistently.

4. Being Unfamiliar With the Law

It’s become a troubling trend in employment law cases: Front-line managers blatantly admit not knowing about laws like the FMLA or the ADA. Managers need to be trained on the ins and outs of employment laws to ensure compliance. Managers should also know when to bring HR into the conversation to help navigate tricky compliance issues.

5. Ignoring Employees’ Complaints

Granted, it may seem as if some employees complain incessantly. However, all complaints about unfair treatment or harassment must be taken seriously and investigated promptly. Failing to respond to complaints is a common manager mistake that can lower employee morale, lead to costly lawsuits and overlook a hostile work environment.

6. Blatant rudeness

Nearly one in four employees say they work right now for the worst boss they’ve ever had, according to research from Perceptyx. Among other things, employees don’t like following leaders they deem unsupportive and incompetent. There’s a fine line between being stern and being flat-out rude.

When managers err toward the latter, it can make employees think they disapprove of a specific protected trait — such as age, race or gender — and potentially lead to a discrimination lawsuit.

Strengthening Managerial Practices to Avoid Legal Pitfalls

Front-line managers steer the daily operations and shape the company culture, yet even a small misstep can quickly turn into a major legal headache.

When HR gives middle managers solid training, clear guidelines and keeps everyone on the same page with policies, it really cuts down on the usual slip-ups and reduces manager mistakes.

When supervisors know the rules, actually listen to their team, and offer straightforward feedback, it goes a long way in keeping the company safe. Investing in manager training is one of the simplest ways to keep things running smoothly and dodge costly problems later.