Middle Manager Discriminates, Senior Managers Pay

Can senior managers be held liable if a middle manager lies about the reasons for terminating an employee? You bet they can. In a recent federal case outlined in the Boston Globe, a court awarded $827,000 to a 62 year old former branch manager at Hertz Equipment Rental Corp. The fired manager had transformed a money-losing branch to profitability, but was fired by senior managers for “gross misconduct,” based upon the recommendation of a middle manager. [NOTE: The full Circuit Court of Appeals ruling reveals a more complicated situation than that described in the news article. Read the ruling here.]

The firing involved basic operations and equipment maintenance. Senior managers said they fired the employee, who happened to be their oldest manager by several decades, because he failed to have some crane equipment painted in accordance with the regular maintenance schedule. However, the employee’s direct supervisor did not tell the executives the reasons they weren't painted: The equipment was rented out to customers and couldn’t be painted at the time. Indeed, the middle manager and the fired employee discussed the issue and agreed that the painting could wait until the equipment was returned.

This is a situation where the intention to discriminate apparently resided only with the middle manager, not with the senior managers. The detailed ruling reveals that senior managers thought the termination was based solely upon inadequate performance; they had no awareness of the age bias of the middle manager.

According to the article, the decision was significant because it effectively held the employer liable for what top executives did not know, underscoring the basic principle that employers are responsible for what takes place in the workplace.

From the LynchRyan perspective, there is no greater asset in a company than a positive work culture. Managers should treat subordinates well, regardless of age or other circumstances. These same managers need to be straight with senior management. Every termination is full of risk. If you hold the pen, review the situation in detail and make sure that your action is backed up by documented facts. You don’t want to wind up in a courtroom where the expense of lawyers and the time consuming reconstruction of events means that win, lose or draw, you lose.