Lawsuits over jobs on the rise

Rob Langrell, Special Publications editor

Friday, March 19, 2010 | 3 a.m.

Times are busy for local employment attorneys. And things don’t appear to be slowing down any time soon.

With an economy that continues to face challenges, more businesses in Nevada have turned to layoffs as they try to make ends meet and remain profitable. Consequently, discrimination complaints and lawsuits are on the rise, according to one local lawyer.

“When we are in an up economy and the unemployment rate is low, people can tend to find a new job with equal pay and benefits pretty quickly if they lose their current job,” said Nick Crosby, a labor and employment attorney for the law firm of Marquis & Aurbach. “In tough times like today, when there aren’t any jobs out there, and you have a person who was a marginal employee who didn’t do anything wrong, it’s a whole different situation. Some people refer to it as the ‘litigation lotto.’ ”

“People see it as an opportunity to extort money from a past employer,” Crosby said. “By in large, most cases I see are frivolous.”

Crosby said his caseload is up threefold over the past year, and particularly busier in the past four months. He points out that an individual can file a complaint with the U.S. Equal Employment Opportunity Commission and the Nevada Equal Rights Commission at no cost.

He said that with the troubled economy, companies whose revenue is down have every legal right to cut back on the number of employees. It’s who they lay off and why that can get companies into trouble.

“It’s a legitimate defense for a struggling company to eliminate staff,” Crosby said. “What companies shouldn’t do is lay off all of their female employees or all of their highest-paid senior people. That’s not against the law on its face, but it certainly looks bad and can certainly become a thorny issue.”

Crosby said employers could avoid trouble by documenting everything they do in regard to their workers. He said that includes documenting reprimands and disciplinary actions, but also include the positives and good work the individual does.

“If you have an employee’s file and all it contains are bad things, it does work against you as an employer,” Crosby said. “Be sure to show balance.”

“I like to guide clients to use common sense. It seems to be the best barometer. If something doesn’t feel right, there probably is something there that isn’t right. But in this market, it’s really hard to avoid receiving some flack when you lay off people.”

Crosby recommends companies maintain a relationship with an employment attorney. He said it’s important to talk to the attorney before any action is taken, not simply wait until a complaint is filed.

“By then, it may be too late,” Crosby said.