legislation fixes
what isn't broken
SOUTH CAROLINA'S COURTS have crafted a sensible approach over the
past 15 years about how a company's statements in its employee
handbook can be used as evidence in wrongful firing cases: It has
allowed juries to judge for themselves the relevance of the handbook
claims. Now the Legislature is prepared to upset this well-balanced
arrangement.
The S.C. House has passed, and the Senate has passed on second
reading, a bill that essentially makes employee handbooks pointless.
In the case of a wrongful dismissal suit, whatever a company had
stated as its policies in the handbook would be legally irrelevant
-- kept outside of a jury's consideration. If this legislation
passes, it will be a major restructuring of employment law --
rearranging a system that is fair to all now.
This bill also is unnecessary, because companies that don't want
to be held legally liable for statements in handbooks already have
what is usually an easy out. They merely must include in the
handbooks a prominent disclaimer, stating that the document is not a
contract and cannot be cited as one in court. When companies use
this caveat, they are being up-front with their employees at the
time of hiring. Under the bill now pending, such employer-worker
candor would be unnecessary.
Employers who fear that a handbook will prove a legal hindrance
to firing employees at will also have a second option: They are
perfectly free not to publish a handbook at all.
Given these options for companies with legal concerns, why is
this legislation even needed? There's no reason why the Legislature
should step in and tilt South Carolina's wrongful dismissal laws so
much in favor of businesses. Instead, the Legislature would, if this
bill is passed, be putting itself in the strange position of taking
evidence away from juries -- evidence that the South Carolina
Supreme Court is allowing juries to judge for themselves.
If this legislation passes, employees will understandably be
inclined to disregard everything in an employee handbook, knowing
that companies have a built-in legal immunity to ignore the
documents they have handed out. That's a needless bit of damage to
the management-employee relationship, which benefits from open
communication.
Of course, this legislation will not affect those employees who
already have a contract with their companies, such as unionized
workers. If this legislation passes, it would only be natural for
union backers to point to the measure as further evidence that
workers should be unionized to protect their rights -- not exactly
the message that business interests supporting this bill would want
to send.
For legislation that meets no great state purpose, this bill
moved through the S.C. House with impressive speed -- and without
even a hint of debate. Given how the bill would change workers'
relations with their employers across South Carolina, it deserves
much more careful debate, as Sen. Kay Patterson tried to ensure. Its
backers still need to make their case that the courts have gotten
this facet of workplace law so wrong that the Legislature must step
in -- a tough case to make in this instance. Absent that, the Senate
would be wise to let this measure die, and to let the state courts
continue trusting juries to judge such legal claims.