NASCAR Sued Over Harassment Claims – Maybe They Should Have Attended Our Seminar


A couple of week’s ago, Precept hosted a seminar called “Top 10 Management No-No’s,” which was presented by labor attorney Nancy Yaffe, Partner, Folger Levin & Kahn, LLP. There are many things that you need to educate your managers on to keep them and your company out of trouble – trouble that could lead to $225 million lawsuits, a la NASCAR.
There are many allegations in this lawsuit stemming from alleged racial and sexual harassment. I won’t go into the details here; instead, it offers an excellent segue into recapping our seminar for you – and giving you some tips on how to not follow in NASCAR’s footsteps.
Management No-No’s That Could Have Kept NASCAR Out of Hot Water
  1. Not treating employees with respect. There is no law that says you must treat employees with respect; it’s just good common sense. Remember the golden rule: Do unto others as you would have them do unto you. If you want to be treated with respect, you must treat others with respect. It’s a two-way street.
  2. Ignoring sexual or race-based jokes or comments. Sure, you’re culture is a big ol’ boy’s club – when you start adding women to the mix, you have to make sure that your employees change their behavior to accommodate. Same goes if you start adding men to an all-women mix – they can’t continue to treat the workplace like they’re in an episode of Sex and the City. Managers cannot allow such behavior in the workplace. Ignoring it can be construed as condoning it – a big no-no.
  3. Making sexual jokes or sexual comments, using profanity, and/or touching other employees. Managers must lead by example. Just like they can’t ignore inappropriate behavior, neither can they participate. You’re just asking for trouble.
  4. Hesitating to Document Performance Issues. In HR, you know how valuable documentation is. But do your managers? NASCAR claims it fired the employee who is now suing because of performance issues; she claims that she always got good performance reviews. If someone makes a claim and you fire that person, it will look like retaliation (see #5 below). But if you fire that same person after they make a claim, and you have documentation on poor performance going back months before the claim was made, you now have a leg to stand on. Doesn’t mean the fired employee won’t sue; just means you have a stronger defense.
  5. Retaliating (or inadvertently retaliating) against an employee who has made a complaint. Managers must be careful in issuing discipline, changing schedules, assigning duties, etc., because any of these may be construed as retaliation.
Another big no-no – NEVER IGNORE A COMPLAINT. Even if you think it has no validity, all complaints must be investigated. The former employee suing NASCAR claims she reported the harassment; NASCAR officials claim she didn’t. If someone comes to you and complains, ALWAYS INVESTIGATE.
I am not a lawyer, and would never pretend to be one. Always check with your labor attorney if you have even the smallest inkling that someone may be planning to sue. A few hours’ worth of attorney costs may save you a whole lot of money in the long run. $225 million, even.
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