The following is from a post by Michael Fox. I agree with his advice that the article referred to is worth reading in its entirety and suggest following the above link for access to the article:
“This article provides a nice summary of some important issues, including WHY plaintiffs may sue you (e.g., it exerts more pressure on the company to settle the case and avoid bad publicity; and plaintiffs’ counsel may hope to create sufficient conflict between the employer and the manager)…
You will also find some suggestions for avoiding being named in an employment-related lawsuit, including:
1. Follow the law and not strictly marching orders;
2. Know how to respond to authorities;
3. Know when to get help;
4. Know your organizational policies and procedures and implement them consistently.
I strongly recommend you read the entire article!”