Thursday, September 25, 2014

Poor Employee Communication cost $173K

A very small oversight cost FedEx $173,000 when they terminated an employee for failing to comply with their policies to approve a Family Medical Leave Act (FMLA) request for time off.
What they didn't know was that if your policies aren't properly communicated to an employee you are liable to legal action.

The employee had health problems, notified them that she needed time off under FMLA.  FedEx had no problem with this.  They asked her to fill out paperwork and provide some medical proof of illness.  She didn't return the paperwork, and was ultimately terminated.

The fault came in when FedEx did not clearly lay out their policies if she, or any other employee didn't comply.  So her day in court came, and she won a wrongful termination suit.  HR is getting trickier and trickier these days; you need backup from outsourced payroll and HR experts.  You also need help communicating with employees.  Be warned.

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