Tag: employers liability

South Carolina Supreme Court Rulings Could Increase Liability In Terminating At-Will Employees Two decisions recently issued by South Carolina's Supreme Court may have a significant impact on the liability of employers and co-workers in litigation resulting from the termination of an employee. In early December, the South Carolina Supreme Court issued a decision in a lawsuit filed by an employee dismissed for inappropriate behavior reported by a coworker. The plaintiff's claim against his employer was for breach of the implied covenant of good faith and fair dealing and against his co-worker who reported him for tortious interference with contractual relations. In reaching its decision, the court answered three certified questions. The first of these was a significant conclusion that at-will employment is a contractual relationship, a topic that had previously caused significant confusion. The court found that when an employer offers to pay an employee to perform a service which they then perform, this creates a contractual relationship under general contract law. However, the court explicitly found that an employer still retains the ability to terminate an employee for any legal reason without creating liability. The second question the court answered was whether or not the termination of at-will employment can breach the contractual covenant of good faith and fair dealing. The court found that because at-will employment expressly gives employers the right to terminate the relationship at any time, doing so cannot breach this covenant. The third question the court answered was whether or not the termination of an at-will employee based upon an unjustified report from a co-worker can result in grounds for a claim of tortious interference. In answering this, the court had to address whether or not tortious interference could arise even though the termination is not a breach of contract. The court found that yes, it could because the court reasoned that the threshold is not whether a breach of contract occurred but whether or not a third party took unjustified actions that resulted in the termination of employment. As a result, a cause of action for tortious interference with a contractual relationship may be created when an unjustified report is filed by a third party that results in the termination of an employee. In the South Carolina Supreme Court's other recent decision, it found that a plaintiff may bring a claim of civil conspiracy without pleading special damages, which are separate and distinct from damages alleged in any other causes of action. This is closer to the requirements of most other states regarding civil conspiracy. For employers in situations such as the case above, this could be highly relevant to employers due to the increased potential for claims of tortious interference, which could also now give rise to claims of civil conspiracy. Employer Takeaways These rulings both increase the risk for South Carolina employers when they choose to terminate employees. In both cases, they provide former employees with more ways to bring claims against their prior employer. This means that employers should ensure they remain vigilant and cautious when it comes to applying disciplinary policies up to and including termination as well as when assessing the reports of one employee against another. Additionally, the new development that an employee can bring tortious interference claims as a result of reports of a fellow employee's misconduct could also have the side effect of dissuading employees from reporting misconduct that they witness. Stay updated on all the new rules of compliance with Pre-employs free news resources on employment eligibility. Contact a Sales Rep today for more information. STAY COMPLIANT WITH YOUR BACKGROUND CHECKS

Tag: employers liability

South Carolina Supreme Court Rulings Could Increase Liability In Terminating At-Will Employees

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