Employer’s Guide for Optometrists

Table of Contents

Chapter I - General Considerations

Introduction..................................................................................................... 1

Legal Terms...................................................................................................... 2

“At Will” Employment......................................................................................... 2

Just Cause........................................................................................................ 2

Constructive Discharge....................................................................................... 2

Contract and Tort............................................................................................... 3

Implied Contract................................................................................................ 3

Defamation....................................................................................................... 3

Damages: Compensatory and Punitive.................................................................. 4

Physical or Mental Disability................................................................................. 4

Retaliation......................................................................................................... 4

At Will Employment............................................................................................. 5

Exceptions and Limitations on At Will Status........................................................... 5

Statutory Limitations on At Will Termination............................................................ 5

Public Policy Limitations on At Will Termination........................................................ 5

Contractual Limitations on At Will Termination......................................................... 6

Common Theories of Wrongful Termination Lawsuits................................................ 7

Wrongful termination in violation of a substantial public policy................................... 7

Discharge in Breach of the Implied Covenant of Good Faith and Fair Dealing............... 7

Discharge in Breach of an Implied Promise Not to

Terminate without Good Cause.............................................................................. 7

Defamation......................................................................................................... 8

Insurance Coverage for Claims of Wrongful Termination............................................ 10

Avoiding Wrongful Termination Claims..................................................................... 11

Stress the At Will Policy......................................................................................... 11

Employment Applications....................................................................................... 11

Offer Letters........................................................................................................ 12

Employment Agreements....................................................................................... 13

Employee Handbooks............................................................................................ 13

Chapter II - Hiring

Pre-Employment Considerations.............................................................................. 16

Employee Hiring.................................................................................................... 17

Employee Selection Criteria.................................................................................... 17

Citizenship........................................................................................................... 17

Credit History and Financial Information................................................................... 17

Drug and Alcohol Use............................................................................................ 17

Education............................................................................................................ 18

English Fluency..................................................................................................... 18

Grooming............................................................................................................. 18

Height and Weight................................................................................................. 19

Relationship with Other Employees.......................................................................... 19

Veteran Status...................................................................................................... 19

Pre-Employment Interviews.................................................................................... 19

Age..................................................................................................................... 20

Marital Status....................................................................................................... 20

Pregnancy............................................................................................................ 20

Physical Disability or Mental Condition..................................................................... 20

Religion............................................................................................................... 21

Criminal History.................................................................................................... 21

Acceptable and Unacceptable Questions: Examples................................................... 21

Step-By-Step A.D.A. Hiring Guidelines..................................................................... 22

Independent Contractors....................................................................................... 24

Why Use an Independent Contractor........................................................................ 24

Penalties for Misclassification of Employee as Independent Contractor.......................... 24

Tests for Independent Contractors.......................................................................... 25

Section 530 “Safe Harbor” Provisions...................................................................... 26

Chapter III - Working

Performance Evaluations........................................................................................ 28

Common Mistakes................................................................................................. 28

Utilize objective standards...................................................................................... 28

Avoid preprinted forms........................................................................................... 28

Coordinate evaluation forms with job descriptions...................................................... 28

Include specifics.................................................................................................... 29

Discuss the evaluation with the employee and have the employee sign it....................... 29

Allow the employee to dispute the evaluation............................................................. 29

Establish an effective recordkeeping system.............................................................. 29

Utilize the evaluation system to prevent lawsuits........................................................ 29

Harassment in the Workplace................................................................................... 30

HARASSMENT FREE WORKPLACE POLICY................................................................... 31

Chapter IV - Termination

Pre-Termination Considerations................................................................................. 34

Analyzing Your Risk of Being Sued............................................................................. 34

High Risk Terminations............................................................................................ 36

Steps to Reduce Exposure to Liability......................................................................... 36

Conclusion............................................................................................................. 38

Termination Procedures........................................................................................... 39

General Considerations........................................................................................... 39

Termination Checklist.............................................................................................. 39

Additional Considerations in “High Risk” Terminations.................................................. 42

Termination Letter.................................................................................................. 42

Reasons for Termination......................................................................................... 42

Dates and Subject Matter of Prior Warnings............................................................... 42

Benefits to Which the Employee is Entitled................................................................ 43

Circumstances Under Which the Employee Had a Right to Appeal................................. 43

The Employee’s Last Day of Work............................................................................ 43

The Date, Time and Place for an Exit Interview.......................................................... 43

Termination Meeting............................................................................................... 43

Exit Interviews...................................................................................................... 44

Post-Termination Liability........................................................................................ 44

Unemployment Insurance....................................................................................... 45

Claims for Unemployment: Conditions of Eligibility..................................................... 45

Availability for Work............................................................................................... 45

Search for Work.................................................................................................... 45

Claims for Unemployment: Burden of Proof............................................................... 45

Voluntarily Leaving Work........................................................................................ 46

Good Cause.......................................................................................................... 46

Misconduct........................................................................................................... 47

How Unemployment Claims Affect the Employer........................................................ 48