Over the last few weeks, financial giant Wells Fargo has come under fire in the national media for creating millions of unauthorized accounts on behalf of unsuspecting customers. The company recently settled with the Consumer Financial Protection Bureau over the matter, agreeing to pay $185 million in penalties and fines in addition to more than $2.5 million in restitution to its clients. Now, however, the company is facing a lawsuit from another direction, as two employees have filed a class-action suit on behalf of all former workers penalized by Wells Fargo for failing to make unrealistic sales goals.
The lawsuit was filed in a California court last week alleging that the sales quotas set by Wells Fargo were “unrealistic,” “unreachable,” and “impossible” without engaging in illegal and unscrupulous practices. While the company has now been called out on such illicit practices, the current action looks to address the needs of workers who refused to break the law and subsequently failed to make their quotas.
The suit also alleges that Wells Fargo wrongfully terminated employees, failed to pay overtime, and engaged in other unlawful business practices. According to reports, the lawsuit is seeking damages in the neighborhood of at least $2.6 billion.
Setting Realistic Goals
While the outcome of the new lawsuit is far from certain at this point, it can still serve as an example to business owners from any industry. If you manage your own business, it is important to set attainable goals for your employees. Objectives that are too ambitious can lead to several negative results. Some employees may grow frustrated at their apparent lack of success, creating serious problems in workplace morale. Conversely, other workers may resort to unethical or illegal means in an effort to meet otherwise unreachable goals. In either case, you, as an employer, could be held responsible for the behavior of your staff.
By setting realistic goals, with appropriate incentives, you can encourage your team to become more productive without violating the law or customer trust. You are also likely to find that your employees will become even more dedicated to your company’s success when they feel that their efforts are recognized and appreciated.
Facing an Employee Lawsuit?
Almost every business owner, at some point, will be faced with an employment-related dispute. If a current or former employee has filed a claim against you, we are equipped to help you. Contact an experienced Schaumburg IL employment law attorney today to schedule a confidential consultation.