1. CHAPTER 17 Rules for Disciplinary Termination Progressive Disciplinary Procedure Cost of Wrongful Termination Private Sector

2. RULES FOR DISCIPLINARY TERMINATION ä Never summarily discharge ä Get all the facts first to make sure your investigation is thorough, complete, and well-documented ä Conduct all employee interviews with care and deliberation ä Investigate promptly--don’t delay ä Always use the final filter approach

3. ä Pinpoint the basis of the discharge ä Whenever possible, inform the employee in person ä Always use progressive discipline and keep appropriate documentation ä When you are done with your homework, go for it ä Beware of the set-up RULES FOR DISCIPLINARY TERMINATION

4. PROGRESSIVE DISCIPLINARY PROCEDURE First Offense = Verbal Warning Second Offense = Written Warning Third Offense = Time Off (With or without pay) Fourth Offense = Termination

5. Figure 1. Cost of Wrongful Termination-Private Sector ECONOMIC DAMAGESNON-ECONOMIC DAMAGES BACK PAY & Fringe Benefits Future Earnings & Fringe Benefits No Reinstatement Compensatory Damages Liquidated Damages Punitive Damages Past earnings from terminated job (+) Pre-judgment interest (-) Interim earnings annual basis (-) Severance pay, retirement bonus, termination bonus (-) Additional income that could have been reason- able earned from equiv- alent employment = SUB TOTAL Present value of future lifetime earnings from terminated job (+) Cost of search of alternative job (+) Increased employment cost due to alternative employment (-) Present value of earnings from alternative earnings = SUB TOTAL (+) Pre-judgment interest on past liquid damages DAMAGE AWARD = SUB TOTAL