Concern of Law Suit

What is the name of your state? IL

My parents own a small business (incorporated)... only 11 employees. My sister, who runs the business, has a couple of employees that have been with the company probably over 20 years but there skills are now almost entirely outdated. She has for about a year verbally communicated that they need to learn the new skills and technology needed to complete jobs. Since June she has written plans outlining what they need to learn. They are not doing it. The money they cost the company (salary, benefits) barely contributes to billing. She wants to let them go but is concerned they will sue on grounds of discrimination just because that is what people do and because they have been with the company for so long. Again, it's a small business and can't really afford some long drawn out legal battle. Would they have any grounds? We're considering offering a compensation package if they would sign a waiver that they would not sue. Is this acceptable?

Thank you.

If she has both verbally and in writing communicated the company's expectations to them and they have not measured up, she can legally terminate them and I don't see where they would have a lawsuit.

If the company only has 11 employees, they would not be able to file a lawsuit through the EEOC anyway, since the Federal discrimination laws begin at 15 employees. Although some states use a lower standard for a suit at the state level, Illinois also uses 15 as the bottom line.

The fact that she can provide documentation showing that they've had a year to upgrade their skills and have failed to do so, will go a long way towards protecting them towards any suit they might try to file, even if they can find a way to file one.

Has the company provided any opportunities for them to increase their skills? It's not mandatory, and they wouldn't lose a suit if they didn't, but if they did it would be further protection.

Bottom line; the employees do not have a valid lawsuit; neither the Federal nor the state discrimination board would be likely to accept a suit if the employees did try to file one; and if they did somehow manage to get a suit off the ground the employees would likely lose.

I agree entirely with cbg. (a) the small size of the company makes it exempt from discrimination laws, and (b) the fact that these employees have been given ample direction and time to upgrade their skills and have failed to do so and it's all documented puts the company in good stead.

For the financial health and future of the business, it sounds like your sister needs to proceed with some staff changes.

There's just one thing I would add:

"We're considering offering a compensation package if they would sign a waiver that they would not sue. Is this acceptable?"

Yes, this is acceptable. However, if these employees are over 40, there is some specific legal language that is generally required in this situation. While the small size of the employer may exempt your sister from having to include this, I would VERY strongly urge that she have the agreement drawn up (or at least scrutinized by) a local attorney.

Thanks for the information. You've all been extremely helpful.

ll