Legal Issues for Performance Reviews

Both employers and employees need to know the legal issues involved in performance reviews. A negative review is not by itself cause for legal action, but employers should take care to not violate workers' rights.

Discrimination
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The U.S. Equal Employment Opportunity Commission warns against discriminatory employment practices. (See References 1) However, according to Business Management Daily, a sudden shift from positive to negative reviews does not necessarily demonstrate that your new supervisor is biased. (See References 2) Attorney Roger A. Hennagin writes on FindLaw.com that even if your employer uses a team approach for performance reviews, your confidentiality must not be breached. (See References 3)

Privacy
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Negligence
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Hennagin reports that rarely, courts have found employers liable for negligence in performance reviews. Evaluations must be reasonable and competent.

Raises
o

Title VII of the Civil Rights Act of 1964 prohibits bias in assigning salary increases. Establishing compensation discrimination requires showing it was intentional. (See Resources 1)

Defamation
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Most courts, examining negative information in performance reviews, have found that defamation did not occur because "publication"-- communicating the information to a third party--never took place. However, in Popko v. Continental Casualty Co., 823 N.E.2d 184 (1st Dist. 2005), the Illinois Appellate Court held that intra company communications during the discipline process amounted to publication. (See Resources 2)

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References
EEOC: Federal Laws Prohibiting Job Discrimination Questions And Answers Business Management Daily: Former boss's good reviews don't prove new boss's bias FindLaw.com: Considerations for Your Performance Evaluation Lawyers.com: Performance Reviews and Raises at Work Journal of the American Dental Association: Going the defamation route, Peter M. Sfikas, J.D.; 2005 Performance Management & Appraisal Help Center Photo

Resources

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