False Employee Reviews Come Back to Bite Companies

False and defamatory reviews written by managers to target employees they don’t like are not only bad for the employee, but they’re also bad for the manager and employer..

And yet, they happen every day. If they’re happening in your company, end them now.

A manager walks down the hall to the HR director and says, “I want to fire Joe. I don’t like him because of _________________.”

The HR staff will usually ask why and ask if the manager has any documentation.

If there’s no documentation of why Joe is so terrible, the search for creating documentation often begins–mainly for legal reasons. Because someone wants ‘backup’ — legal protection to can them.

But in the rush to document something — anything — new problems can arise. And hell can rain down on an organization that plays fast and loose with the employee review process.

In some organizations, it’s simply a fact that whistleblowers are fired through sham reviews for uncovering corruption by someone above their pay grade.  Or a manager wanted someone gone, and HR and others are ready to make it happen through questionable processes.

And company leaders become sloppy and aggressive because they assume the employee will not sue, either out of financial reasons or because of the damage it could do to an employee’s career. Which is fine from a liability standpoint until… your company gets sued.

If you’re concerned about your company’s financial, legal, reputational, or cultural risk, it’s important to avoid loaded, false reviews that are simply designed to advance a manager’s personal agenda.

False employment reviews can be challenged in court–and can hurt a company. In the rush to judgment, smearing an employee to get them out can lead to lawsuits based on discrimination, retaliation, defamation, or libel.

Be worried about:

• Are different people in the same job being judged by different sets of rules and expectations? You can position that lens in either direction–a friend of a manager who was given glowing reviews and wasn’t deserving of them, or someone whose review was harshly negative compared to others.
• Are people lying in their evaluations–and can those lies stand up in court if someone is deposed?
• Is there a tacit agreement between HR, legal, or some managers to protect each other and extend a ‘professional courtesy’ to help remove an employee?
• Is there a paper trail that could send lawsuit damages through the roof?
• Giving harsh reviews to whistleblowers who are undeserved.
• Has retaliation taken place within the company before? If it continues, know that some of the retaliation has likely occurred. Why? 1) It’s convenient and easy in some organizations, and 2) Bad reviews are often utilized as a vehicle for removing someone.

What are the risks for employers?

• If a complaint is filed with the EEOC, punitive damages can be as high as $300,000, depending on the company’s size. That doesn’t include lost wages or any other costs that may be incurred.
• If you falsify an employee evaluation of someone who has blown the whistle, you may be seen as creating unsafe working conditions. Retaliation claims can invite OSHA (if you’re in the U.S.) into the discussion and their penalties–again, before any other compensation is determined–can be up to $1 million.
• Blowback against defaming an employee’s character and reputation–I’ve seen it happen.  In an effort to go for the ‘kill’, they insert false and defamatory information into the evaluation with false accusations of a legal or ethical nature as a way to ensure a successful termination.  This opens up a Pandora’s Box of liability depending on the state or country you live in.
• Discovering the problem of the discovery processes–Imagine what could come out of a deposition process determining who knew what and when? And having outsiders look at your organization’s previous reviews.  And giving the media a peek into your operations and processes when a lawsuit goes public?
• Finally, this process can uncover additional skeletons if a lawsuit is filed.  A lawsuit can bring new plaintiffs forward, as employees (current and former) learn they were also mistreated. If your board of directors is in the dark, they’ll learn some things too and may face liability depending on what they knew and didn’t know. The media, customers, regulators, and lawmakers will also find out exactly what’s going on inside your organization.

Want to play it smart and avoid these risks? Here are several things a smart leader should do.

• Build a culture that encourages employee feedback that is free of retaliation
• Ensure that HR departments understand the company leadership’s vision of high ethical standards
• Hire and retain legal counsel (inside and outside) who understand the need for a legitimate review process
• Train managers and all leaders to adhere to a code of conduct that upholds truth and ethics.
• If violations of these standards occur, as a leader, take appropriate action. The true test of a company’s culture is whether it is willing to apply its standards — and the consequences of violating them — to every person in the company, from the newest employee to the CEO.  Are you willing to set a standard and hold your people to it?

None of this is rocket science. To protect your company and build trust with employees, ensure your review processes can withstand scrutiny and demonstrate the respect people deserve. Say no to false employee reviews.

Pete Havel is a speaker, trainer, and consultant on workplace culture and leadership. He speaks and consults for organizations ranging from law enforcement agencies to Fortune 500 companies.  He’s also the author of “The Arsonist in the Office: Fireproofing Your Life Against Toxic Coworkers, Bosses, Employees, and Cultures,” named as a #1 Hot New Release by Amazon. Pete can be reached at pete@petehavel.com . You’ll also find more information on him at www.petehavel.com.