• Consistent performance appraisal practices can help employers avoid costly legal pitfalls.Jupiterimages/Brand X Pictures/Getty Images
  
  Public and privately owned large and small businesses conduct employee performance appraisals. The assessments are an effective way to document employee performance results. Performance appraisals can also be used in courts of law during lawsuits alleging discrimination and other prohibited employment practices. For this reason, it is advisable that supervisors and employers avoid legal pitfalls when they document employee performance.
  
  

Sexual Harassment

• Avoid commenting on an employee's gender (e.g. Harold does an exemplary job managing the assembly line because he is a confident man.). Do not include sexual harassment investigation findings in performance appraisals. Do ensure that your human resources department addresses complaints of sexual harassment as soon as they are received. Document the results of sexual harassment investigations, including interviews with relevant supervisor, witnesses, defendants and the employee who files the complaint.
  
  

Discrimination

• Record specific achievements that employees make when writing performance appraisals to avoid discriminating against employees. Remember that the Civil Rights Act of 1964 protects employees against discrimination based upon their age, national origin, race, color or/and gender. Include dates that performance missteps occurred on when you document areas of improvement (e.g. not managing a project within budgetary guidelines). If possible, have copies of errors (e.g. reports) in the employee's file. Do not connect or attribute achievements or missteps to the employee's age, color, religion, mental or physical disability, race or ethnic origin.
  
  

Layoffs

• Report your honest findings on an employee's performance during company economic downturns. Shun writing performance appraisals that seemingly justify an impending layoff. To avoid class action lawsuits during broad company layoffs, ensure that each employee receives a written performance review at the same time (e.g. bi-annually, annually). Allow employees to write comments on their review after they meet and discuss their performance with their supervisor.