The Key to Eliminating Lawsuits and Employment Law Actions

We were chatting recently with the legal teams from a couple of our dealership clients, and an interesting topic cropped up. The conversation revolved around the best thing dealers can do to protect themselves from lawsuits. What was interesting, though, was the answer the group came up with also ended up being the best way to protect themselves from employment law actions as well. Who doesn’t love a two-for-one?

So, what was it? How do you get your two-for-one?
Focus building an effective program for investigating and resolving claims.

Here are some recommendations for making sure your program’s up to snuff:

Write it Down

Have a policy and procedure in place on how investigations will be handled in your dealership.

Consistency is Key

Follow the policy and procedure each and every time.  Consistency, whether it is a customer complaint or an employee claim, will put your dealership in a much more secure position.

Ownership

Assign a process owner for the investigation that will lead from “cradle to grave.”

Document each step of the process

Whether it’s a customer or employee complaint, you could still be sued after a proper investigation and action. Your documentation of actions will be vital to defending your case.

Post Mortem Review

Make sure you pull together the key employees involved in an incident or with the managers surrounding an employment claim.  This is not a finger pointing session, that should have been completed in the investigation.  The goal is to learn from the incident, change your policy and procedure if necessary and show that your dealership embraces a culture of compliance.

A healthy approach is to go in with the opinion that no claim is too small or frivolous to gain your attention.  Often, it is a small claim that is not properly investigated and responded to that leads to a lawsuit.  When you treat every claim or complaint like it could result in a major legal liability and apply the appropriate resources, you’re being proactive…and limiting your exposure to claims and litigation.

Get the Checklist: