Learn the critical first action HR managers must take when notified of an employment-related lawsuit. Expert guidance for the SHRM-SCP certification exam.
Table of Contents
Question
When an HR manager receives notification of an employment-related lawsuit which action should be taken first?
Answer
Issue a litigation hold letter. Issuing the appropriate notifications prevents the loss of potential evidence and allows for further legally compliant direction from counsel. Counsel should be consulted before any of the other steps are taken.
Explanation
When an HR manager is notified that their organization is facing an employment-related lawsuit, the very first step they should take is to issue a litigation hold letter. This letter officially directs relevant personnel to preserve all documents, communications, and other materials that could potentially serve as evidence in the legal case.
Promptly issuing a litigation hold is crucial for several reasons:
- It ensures key evidence is not inadvertently deleted, overwritten, or destroyed. Failing to preserve evidence can lead to serious legal consequences.
- It puts the organization in the best position to mount an effective defense by maintaining access to important documents and records.
- It demonstrates good faith and regulatory compliance, which can help mitigate damages.
Before taking any other actions, such as interviewing involved parties or reviewing relevant policies, the HR manager should consult with legal counsel for guidance. The attorney can advise on the appropriate scope and recipients of the litigation hold notice, as well as recommend next steps to properly navigate the legal process.
In summary, issuing a litigation hold should be the HR manager’s first move upon learning of a lawsuit. This allows the organization to secure vital evidence and obtain expert counsel to determine an optimal response strategy. Any delay creates undue legal risk.
SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.