Board Action for Employee Complaint

You are an expert at providing advice to nonprofit boards. There is a situation where an employee at a nonprofit has complained to the board about the executive director. The board wants to handle the matter appropriately (following legal requirements in California), while avoiding strife with the executive director. What would you suggest as a course of action?

I understand you’re seeking advice on how a nonprofit board should handle a complaint about an executive director while following California legal requirements. Here’s a structured approach I’d recommend:

Immediate Steps

First, treat this complaint seriously and acknowledge your duty of care as board members. You need to:

1. Document receipt of the complaint while maintaining confidentiality
2. Determine if the complaint involves illegal activity, harassment, discrimination, or retaliation, as these require specific handling under California law

Investigation Process

California nonprofits must investigate workplace complaints thoroughly:

• Consider whether an independent third-party investigator is appropriate (strongly recommended for serious allegations)
• Ensure the investigation is prompt, thorough, and impartial
• If using internal resources, select someone without conflicts of interest
• Document all investigation steps meticulously

Legal Compliance Considerations

California has specific requirements that nonprofit boards must follow:

• The board has fiduciary duties to the organization, including duty of care in handling complaints
• California’s Fair Employment and Housing Act (FEHA) requires proper investigation of discrimination/harassment claims
• Whistleblower protections apply if the complaint involves financial impropriety or legal violations
• Document retention policies must be followed for all investigation materials

Working with the Executive Director

To maintain an appropriate relationship with the executive director:

• Be transparent about the process without disclosing confidential details
• Explain the board’s legal obligations to investigate complaints
• Emphasize that a proper investigation protects everyone, including the ED
• Consider whether temporary adjustments to reporting relationships are needed during the investigation

After the Investigation

Based on findings:

• If unsubstantiated: Close the matter formally with documentation
• If substantiated: Take appropriate corrective action proportional to findings
• In either case: Ensure no retaliation against the complainant

Would you like more specific guidance on any of these aspects, or information about resources available to California nonprofit boards handling such situations?

For anything involving legal advice, you want to be very explicit about the jurisdiction (e.g. California), AND always double-check the result with a real lawyer. There can often be subtle differences in the situation that result in significantly different courses of action.

It probably would have been better if my prompt asked what information I needed to provide, to get a good answer. Claude would likely have asked me about the nature of the complaint, and then been able to provide more specific recommendations.

Please describe the process, step-by-step. For example, when should the board tell the executive director about the complaint, versus other steps that need to be taken?

I probably could have modified the initial prompt to ask Claude to give me both an overview (which it did) and a step-by-step process.

Step-by-Step Process for Handling an Employee Complaint Against an Executive Director

Step 1: Initial Receipt and Assessment (Day 1)

• Document receipt of the complaint with date, time, and basic details
• Convene a small committee (2-3 board members) to make initial assessment
• Determine if the complaint involves illegal activity, harassment, discrimination, or retaliation
• Assess whether immediate interim measures are necessary to protect the complainant

Step 2: Select Investigator (Days 2-5)

• For serious allegations: Engage an independent investigator with nonprofit and California employment law experience
• For less serious concerns: Designate an impartial board member without close ties to the ED
• Execute confidentiality agreements with all parties involved in the investigation

Step 3: Notify the Executive Director (Days 5-7)

• This is the first point where the Executive Director should be informed
• Have the board chair and one other board member meet with the ED
• Provide general information about the nature of the complaint without disclosing the complainant’s identity if possible
• Explain the investigation process and timeline
• Emphasize this is standard protocol required by California law
• Be clear this is not a prejudgment of the situation

Step 4: Investigation Planning (Days 7-10)

• Develop investigation plan with timeline and interview schedule
• Identify relevant documents to be reviewed
• Determine who needs to be interviewed
• Establish protocols for confidentiality and documentation

Step 5: Conduct Investigation (Days 10-30)

• Interview the complainant first to gather complete details
• Interview the ED to get their perspective
• Interview relevant witnesses
• Review pertinent documents and communications
• Document all interviews and evidence collected

Step 6: Analyze Findings (Days 30-35)

• Review all evidence collected
• Determine if the complaint is substantiated based on preponderance of evidence
• Draft a confidential investigation report with findings and recommendations
• Have the report reviewed by legal counsel if appropriate

Step 7: Board Review (Days 35-40)

• Present investigation findings to the full board in executive session
• Discuss and vote on appropriate actions based on findings
• Document board decisions and rationale

Step 8: Communicate Results (Days 40-45)

• Inform the ED of the outcome and any actions to be taken
• Inform the complainant that the investigation is complete
• Provide appropriate information about outcome while maintaining confidentiality
• Document all communications

Step 9: Implement Remedial Actions (If Needed) (Days 45-60)

• Execute any disciplinary or corrective actions determined by the board
• This could range from a performance improvement plan to termination depending on findings
• Ensure documentation of all actions taken

Step 10: Follow-up and Monitoring (30-90 Days After Resolution)

• Check in with the complainant to ensure no retaliation has occurred
• Monitor implementation of any corrective actions
• Review organizational policies and procedures for potential improvements
• Document follow-up activities

Special Considerations

• If the complaint alleges serious misconduct (sexual harassment, financial impropriety, etc.), consider placing the ED on paid administrative leave during the investigation
• For financial misconduct allegations, notify your D&O insurance carrier immediately
• For cases involving potential criminal activity, consult with legal counsel about reporting obligations

Following this structured process helps ensure compliance with California law while maintaining appropriate boundaries with the executive director throughout the investigation.