critical. Employers conduct performance evaluations because they want to recognize good performance and correct underperformance. But if the manager can’ t be honest, they fail the company – and as a result, they should not be a manager.
Honesty is also important for legal reasons. As employment lawyers, too often we face defending a performance-based termination decision where the performance evaluations indicate the employee“ meets( or exceeds) standards.” When that happens, the former employee’ s lawyer will be asking the manager at trial – when were you lying? Was it when you conducted the performance evaluation or when you used performance as the justification for the termination? Honest managers don’ t find themselves in this uncomfortable situation. And the companies that employ these honest managers don’ t incur the risk and legal costs associated with dishonesty.
Managers also need to ensure their comments are appropriate and legal. For example, it would not be appropriate to criticize the attendance record of an employee whose only absences were covered by the Family Medical Leave Act. In addition to training managers, human resources should review draft performance evaluations for these and other inappropriate comments.
Key Points:
• Remove managers who cannot be honest about performance from management roles.
• Train managers on the legal importance of being honest in performance reviews.
• Train managers on employment laws so they understand what should and should not be considered when evaluating employees.
• HR should review draft performance documents before finalized.
Conclusion
The annual review process provides an opportunity to enhance employee performance and help your club achieve its overall business objectives. Keeping these five cornerstones in mind should help your club develop a successful program valued by both managers and employees. Should you have any questions about enhancing your program to add value to your organization and reduce your legal risks, please reach out to your Fisher Phillips attorney or the author of this article.
We will continue to monitor developments in this area, so make sure you are subscribed to the Fisher Phillips’ Insight System to get the most up-to-date information. You can sign up with the QR code below or by visiting fisherphillips. com.
This summary document is intended for general business information purposes only. It is not a complete or all-inclusive explanation, and it should not be construed as tax or legal advice on any specific facts or circumstances. Numerous regulations, interpretations and other authorities must be evaluated in applying these principles. G
J. Hagood Tighe is a partner with Fisher Phillips. He represents franchisees across the country. Hagood can be reached at htighe @ fisherphillips. com or 803-255-0000.
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GearedUp | 2025 Issue 3
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