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Wednesday, October 29, 2014

Anti-workplace bullying statute: A death knell for merit-based pay?

There's a new statute that applies to employers with over 50 employees known as “abusive conduct prevention training.” The law appears to be innocuous enough — it “simply” requires these employers to add anti-bullying training to their already existing sexual harassment prevention training classes.

That appearance is deceptive. On closer examination you'll see that the law isn’t simply addressing the obnoxious behavior of willful bullies. It also covers managers who undermine “a person’s work performance.”

Why do I think this law will lead to the curtailing of merit-based pay? Because the new working generations have been brought up in an environment where they are always winners no matter whether they score any points in the game. For them everyone goes home with a trophy just for showing up.

Traditionally work has been different. Not every employee’s performance makes them an MVP. The rule has been that merit is rewarded. In Silicon Valley companies best performers get the best performance evaluations, the best salary increases and the best stock options. On the other hand poor performers are transitioned out of the company.

Will the traditional merit-based system seem “abusive” to people who have never heard anything but “good job.” A recent article on workplace bullying in Health Magazine advised employees that, “If you have a bully, chances are it’s your boss.”

Should the younger generation’s idea of any comparative performance rating as “abusive” prevail under this statute then managers could only give merit-pay raises at their peril of being subject to discipline or eventually being sued. Although the statute does not include a private cause of action against an abusive manager at this point that seems to be the direction we’re headed for in California.


When you're looking to add this new “Abusive Conduct Prevention” training to your sexual harassment classes keep in mind the precarious situation managers are being put into based on the definition of managerial abusive conduct in today's environment. Make sure your training and your company policy clearly delineates the difference between merit-based pay for performance from willful conduct that undermines and sabotages an individual’s work performance.

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