How Everyday Manager Decisions Create Six-Figure Legal Problems - American Society of Employers - Dana Weidinger

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How Everyday Manager Decisions Create Six-Figure Legal Problems

The most common reason well-intentioned employers face costly lawsuits is everyday manager mistakes.  These managerial mishaps can quietly snowball into six-figure legal problems.

Employment attorneys consistently report that these cases don’t begin with bad intent. They begin with front-line managers making avoidable errors that fall outside formal HR processes and often go unnoticed until an employee files a complaint or a claim. Inconsistent policy enforcement, vague documentation, and poorly handled conversations can all escalate quickly, leaving HR to defend decisions that were never properly vetted.

HR plays a critical role in reducing this risk, but many of the most damaging missteps occur in daily manager interactions such as performance conversations, scheduling decisions, and informal responses to employee concerns. Without visibility or intervention, these behaviors can repeat across teams, creating patterns that plaintiff attorneys are quick to identify.

The most effective organizations take a proactive approach. Regular manager check-ins, targeted training, and clear standards for documentation and decision-making help transform manager behavior into something HR can monitor, coach, and correct before it becomes a legal liability.

Common Mistakes to Watch For

1. Sloppy or Delayed Documentation
Performance documentation should always be written as if it could one day appear in a courtroom. Common mistakes include vague expectations (“be more professional”), subjective language, or failing to set timelines for improvement. Just as risky is delayed documentation, for example, waiting weeks or months to record issues undermines credibility.

HR tip: Coach managers to document performance concerns in real time using objective examples, clear dates, and defined expectations for corrective action.

2. Inflated Performance Reviews

Many managers avoid tough conversations by overstating performance ratings. When glowing reviews are followed by sudden discipline or termination, it creates conflicting records that are difficult, if not impossible, to defend. During legal discovery, written reviews often outweigh after-the-fact explanations.

HR tip: Build a calibration or review audit process that allows HR to flag inflated ratings that conflict with documented concerns or later actions.

3. Inconsistent Policy Enforcement
Well-intended exceptions are a common starting point for legal exposure. When one employee is disciplined for behavior but another is excused for it, it opens the door to discrimination or retaliation claims. Courts often focus less on intent and more on whether policies were applied consistently.

HR tip: Require managers to route policy exceptions through HR and document the business rationale.

4. Lack of Legal Awareness
Front-line managers don’t need to be legal experts, but they do need to recognize when routine decisions intersect with employment laws such as FMLA, ADA, or anti-retaliation protections. Trouble arises when managers act without realizing HR should be involved.

HR tip: Train managers on “trigger moments” that require HR involvement, including leave requests, accommodation discussions, and discipline tied to recent complaints.

5. Ignoring or Informally Handling Complaints
Managers sometimes believe they can resolve complaints quietly and move on. The risk is that these conversations go undocumented or unreported, leaving no record that concerns were raised or addressed.

HR tip: Set a clear expectation that any complaint involving unfair treatment, harassment, or retaliation must be documented and escalated to HR.

6. Repeated Rudeness or Poor Conduct
While not every rude interaction is illegal, patterns of disrespect, especially when directed unevenly, can later be framed as evidence of bias tied to a protected characteristic.

HR tip: Address tone and conduct issues early and document them consistently, before behavior is reinterpreted as discriminatory.

Turning Manager Behavior into a Controllable Risk

Front-line managers shape decisions that rarely reach HR until something goes wrong. The strongest HR teams recognize manager behavior as a controllable risk factor. Through consistent oversight, clear escalation rules, and ongoing training, small missteps can be corrected early, long before attorneys get involved.

Investing in manager training is one of the most reliable ways HR can reduce legal exposure and protect the organization from preventable claims.

ASE Connect

Training

Principles and Practices of Supervision I

This course provides the foundational skills for supervisors, either new or experienced.  This nuts-and-bolts class looks at popular managerial models and provides practical tools and knowledge to help supervisors conquer the ten most critical tasks of a supervisor. This is a multi-session course over several weeks.

Principles and Practices of Supervision II 

This class is the sequel to Principles and Practices of Supervision I.  This class builds on the nuts and bolts learning in Principles I and takes a look at the strategic and leadership aspect of the supervisor role.  In this class, supervisors look at ways they can influence their teams for better performance and some things that might hinder their success.  This class provides supervisors an opportunity to gain insight into how they supervise. This is a multi-session course over several weeks.

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Download our HR Essentials Checklist for Non-HR Managers

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Sources: hrmorning.com

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