New at-will law to
strengthen hand of S.C. firms in firings
By JIM
DuPLESSIS Staff
Writer
Starting next month, employers in South Carolina can fire workers
and worry a little less about lawsuits as a result.
Gov. Mark Sanford signed a bill March 15 that makes it harder for
workers to contest a firing by using an employee handbook, personnel
manual or similar document as evidence of a contract. The change to
the state’s employment at-will law is effective July 1.
“Employment at will” means a person can be fired for any reason
at any time, unless the person’s employment is protected by a
written contract or another law, such as those that prohibit firing
someone because of their race or age. The same at-will doctrine
allows a person to quit any time.
However, the principle is trumped by a written contract. The
problem for employers has been when juries decide that companies
unintentionally created such contracts in their handbooks.
The new law states that a handbook, personnel manual, policy,
procedure, or other document issued by an employer or its agent
after June 30 “shall not create an express or implied contract of
employment if it is conspicuously disclaimed.”
Kristine L. Thompson, a Columbia lawyer who represents companies,
advises companies that want to issue handbooks to:
Issue new ones after June 30. Old handbooks are not protected by
the new law.
Avoid promises and commitments to employees.
Include a conspicuous disclaimer on the first page printed in
capital letters and underlined.
Require employees to sign the new handbook.
Consult an attorney.
Memos will also require conspicuous disclaimers, but not
necessarily signatures, she said.
The trick will be determining what is conspicuous. Thompson said
she and other lawyers are modeling disclaimers after language and
formats upheld by past court rulings.
Working in the employers’ favor is the last sentence of the new
law, which will allow judges to decide whether a disclaimer is
conspicuous. Under current law, they must let juries decide.
Employment at will is a common law doctrine, one that has been
established by courts over time.
In South Carolina, the courts have ruled that handbooks can be
considered implied contracts if they include promises or mandates,
even if they are accompanied by an overall disclaimer.
Lawsuits involving handbooks typically have been filed when
employees have claimed they were fired without warnings, hearings or
other steps outlined in disciplinary procedures spelled out in their
handbooks.
The bill was backed by business groups, including the S.C.
Chamber of Commerce. Hunter Howard, the chamber’s president, said
the court rulings weakened the principal of at-will employment in
the state, and caused many companies to stop issuing handbooks.
The courts’ rulings led businesses to perceive their liability
was growing, said S.C. Rep. Harry Cato, R-Greenville, who introduced
the bill.
“It became a concern to companies, and companies considering
moving to South Carolina,” he said. “We felt it was going to hurt
the business climate of the state, and economy of the state.”
The bill was opposed by the S.C. AFL-CIO, a federation of labor
unions, and the S.C. Trial Lawyers Association, whose members
represent workers in disputes with companies.
Malissa Burnette, a Columbia lawyer and member of the
association, said the new law gives employers license to lure people
to work for them by showing them written materials they can ignore
at will.
“It’s an intent to prevent employees from having the same right
to enter into contracts with other people,” Burnette said.
“This law says an employer can write down a promise to an
employee, but if they put certain language in front of it, they can
take it back. It can be a total lie.
Donna Dewitt, president of the S.C. AFL-CIO, said workers should
take the new law as a warning: “No matter what you read in that
handbook, it means nothing. If they don’t like you, they can fire
you.”
Dewitt said it is ironic that most of the workers likely to be
hurt by the law are salaried employees, who more often take their
cases to court, while union members are protected from the law
because they are covered by written contracts.
“If you really want to know what you have, you need a written
contract.”
The new law, she said, “should be an excellent organizing
tool.”
Reach DuPlessis at (803) 771-8305 or jduplessis@thestate.com. |