20 Most Common Employer Mistakes That Could Cost Your Hospital

11. Failure to conduct thorough investigations into employee complaints and, if necessary, take prompt remedial action. If an employee tells you he or she is being harassed, look into it immediately. Again, this is not a difficult concept, but some employers hope to avoid confrontation at all costs, and often to their own detriment. Establish ground rules for the interviews, including providing the employee with an explanation about the complaint. Don't make judgments or draw conclusions. Make sure the employee answers the questions posed, listen carefully, and take notes.

12. Failure to curtail inappropriate use of office e-mail and computers. We've all heard about or experienced the employee who forwards tasteless, racist, or other offensive humor, or who uses Playboy centerfolds as his screen saver. This could be construed as creating a hostile work environment.

13. Failure to curtail employee favoritism or inconsistent treatment of employees. We all have seen this one, the boss's pet. Beware, this breeds a lot of resentment among employees—and jurors—many of whom have had to deal with it in their own work environment.

14. Failure to correctly designate absences under the Families and Medical Leave Act. Eligible employees can take up to 12 weeks off under FMLA at companies with 50 or more employees, who must have been employed there for at least a year, including 1,250 hours in the previous 12 months. Eligible categories include the birth of a child, placing a child for adoption or foster care, caring for a close relative with a serious health condition, and the employee's own serious health condition. This probably won't affect many of the smaller physician practices, but it's still a good idea to be aware of the law.

15. Failure to prepare for foreseeable employee terminations. If you see an employee that might be a good candidate for termination, plan for it. Document your case for termination. Provide that employee with the necessary notices, releases, and waivers. Determine whether that employee is in a "protected class," which could cause problems later. Make sure you have ready the fired employee's severance and vacation pay at the time of termination, and make sure it is accurately assessed.

Post-termination mistakes
And finally, we come to what Malfitano and Silberman call the "post-termination mistakes"—those loose ends you failed to secure when you cut your ties to a troublesome employee.

16. Allowing former employees to make copies of their personnel files. "The personnel file is not their file. It's the employer's property," Malfitano says. "Once the employee ceases to be an employee, there is no benefit to the employer relationship by letting them have access to the file. The only reason why former employees want the file, in our experience, is to sue their former employers." Some states require employers to make their files available, but most don't. Check your local statutes.

17. Inappropriate or defamatory comments about former employees. We all like to chat about how nice it is since you-know-who got canned. But doing so can constitute defamation. Be particularly careful with references for other employers. Confirm the basic facts and don't offer opinions. Be careful about even positive comments. "Once you say something good about one employee and you're not making the same comment about another, that is a de facto negative comment about the one you won't comment on," Silberman says.

18. Failure to tell former employees about their right to COBRA coverage. Remember, there have been some changes to COBRA coverage under the stimulus bill passed last winter. Make sure you understand who is eligible, who pays, and what subsidies are applied.

19. Failure to prepare for unemployment compensation appeals hearings. Again, this is not rocket science. This should be foreseen.

20. Failure to think about how a jury would view your personnel decisions before you make them. This can be an interesting exercise. Imagine you're sitting in the jury box. How would you view your own actions? "The bottom line is look to see if this is fair. If you are taking someone's livelihood away, and you're going to face the jury with this decision, make sure it is something you are comfortable with and ask if this is something that six random people would agree with," Silberman says.

If you look at these 20 common mistakes, they're remarkably avoidable, with a little bit of training and self-awareness. While following Malfitano's and Silberman's advice won't guarantee that you won't end up in court, it will probably improve your chances, or at least help you build a stronger case to bring before a jury.