Employer Strategies for Responding to Employee Demand Letters: Legal, Strategic and Ethical Considerations
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1 Presenting a live 90-minute webinar with interactive Q&A Employer Strategies for Responding to Employee Demand Letters: Legal, Strategic and Ethical Considerations Evaluating Whether to Settle or Take Preemptive Action; Determining What to Include or Exclude in Response THURSDAY, JANUARY 19, pm Eastern 12pm Central 11am Mountain 10am Pacific Today s faculty features: Adrian Hoppes, Esq., Holden Law Group, Auburn, Calif. H. Scott Johnson, Member, PCT Law Group, Alexandria, Va. Judith Bevis Langevin, Partner, Zelle, Minneapolis The audio portion of the conference may be accessed via the telephone or by using your computer's speakers. Please refer to the instructions ed to registrants for additional information. If you have any questions, please contact Customer Service at ext. 10.
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4 Employer Strategies for Responding to Employee Demand Letters Legal, Strategic and Ethical Considerations
5 5 Considerations in Determining Whether to Respond to the Demand Letter
6 Considerations in Determining Whether to Respond Legal Considerations Signed agreements/contracts in place Other legal requirements for a response: Personnel file requests Payroll file requests Litigation hold notice 6
7 Considerations in Determining Whether to Respond Legal Considerations, cont. Investigation of claim what is the exposure? Counterclaims? Notice/tender to insurance carrier? 7
8 Considerations in Determining Whether to Respond Strategic Considerations Status of employee current or former? Opposing counsel reputation and MO Professional opinion on: Company representatives as witnesses Company image/publicity issues Perceptions of plaintiff 8
9 Considerations in Determining Whether to Respond Strategic Considerations, cont. Availability of defensive evidence Who is the audience? 9
10 Considerations in Determining Whether to Respond Ethical considerations Confidentiality Disclosing confidential information Attorney-client privilege (employee level?) Competence Have the legal knowledge and skill to respond? 10
11 Considerations in Determining Whether to Respond Ethical considerations, cont. Duty to communicate Settlement offers Scope of representation Procedural and legal strategy authority Settlement authority 11
12 12 Deciding What to Include in the Demand Letter Response
13 Deciding What to Include in the Demand Letter Response General Outline of a Response Introduction Response to employee s version of the facts Response to employee s analysis of the law Client s firmly stated position on demand 13
14 Deciding What to Include in the Demand Letter Response The Introduction Introduction should include Description of author General summation of author s/firm s engagement Purpose of letter 14
15 Deciding What to Include in the Demand Letter Response Response to Alleged Facts Approach depends on desired outcome Be succinct Be sincere Don t include potentially adverse statements or admissions 15
16 Deciding What to Include in the Demand Letter Response Response to Analysis of Law Focus on areas of disagreement regarding law Highlight weaknesses in employee s case Consider detailing strengths of employer s defense Don t hesitate to cite case law if helpful 16
17 Deciding What to Include in the Demand Letter Response Response to the Employee s Demand Clearly articulate client s position Make sure tone reflects desired outcome Balance confidence and reasonableness Place opposing counsel on defensive 17
18 Deciding What to Include in the Demand Letter Response Common Mistakes Over reliance on For Settlement Purposes disclaimer Failure to bluff wisely Losing sight of client s goals Sending response in the heat of the moment 18
19 Deciding What to Include in the Demand Letter Response Common Mistakes, cont. Bad tone (e.g., inappropriate humor, obnoxious, condescending) Trying to win the case with the response 19
20 Deciding What to Include in the Demand Letter Response General Tips Draft letter as if it will appear as a trial exhibit Consider preemptive action along with response Be truthful Get client s input before sending 20
21 21 Effective Preemptive Strategies Upon Receipt of a Demand Letter
22 Effective Preemptive Strategies Legal Responses to Consider Injunctive relief if irreparable harm imminent Declaratory judgment Contract interpretation Breach of fiduciary duty or duty of loyalty 22
23 Effective Preemptive Strategies Legal Responses to Consider, cont. Claim of malicious prosecution Claim of tortious interference with contract 23
24 Effective Preemptive Strategies Legal Responses to Consider, cont. Proceed with caution when contemplating assertion of claims Injunctive requires showing of irreparable harm Declaratory judgment requirements, form may differ state to state vs. federal Local courts may disfavor employer preemptive strikes Benefit and burden of driving the litigation 24
25 Effective Preemptive Strategies Other considerations Litigation hold demand to plaintiff? Element of surprise, difficulty for unsophisticated plaintiff or counsel Critical protection of employee notes and electronic evidence Requires employer litigation hold What if demand letter contains no litigation hold? 25
26 Effective Preemptive Strategies Other considerations, cont. Managing internal communications Anticipate employee contact by plaintiff s counsel Prepare managers and supervisors Inform other employees of possibility, no obligation, but do not prohibit Limit internal discussion to protect privilege 26
27 Effective Preemptive Strategies Other considerations, cont. Insurance analysis Notice requirement Cooperation clause Choice of counsel clause 27
28 Effective Preemptive Strategies Other considerations, cont. Consider opening negotiations The introductory call (without authority) Availability of agency mediation? Possibility of mandatory mediation? 28
29 Effective Preemptive Strategies Other considerations, cont. The risk of poorly managed unemployment claim responses The risk of retaliation 29
30 Thank You Adrian Hoppes Holden Law Group H. Scott Johnson PCT Law Group Judith Bevis Langevin Zelle 30
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