Jim Trainor Case
As the representative for Club Physique, you will be negotiating with Jim Trainor, a former employee who was just fired.
Background for both Jim Trainor and Club Representative
Jim Trainor was just terminated from his position as an aerobics instructor for Club Physique, an exclusive fitness club that caters to very wealthy individuals. Club Physique only hires “beautiful people” who can serve as personal fitness coaches to the rich. It is club policy that employees may not socialize with any client. Further, no private fitness lessons are permitted outside of the club. All new employees sign a contract stating that they will abide by these two rules as a condition of employment. The five women who violated these policies were counseled and informed that if there is another infraction they will be fired. While Jim repeatedly violated both policies the female “offenders” each met a club client one time at Starbucks for coffee before the club opened.
When it was learned that Jim was giving many private fitness lessons at his apartment and dating several club members he was terminated. Jim was making $75,000 per year. Jim has filed a sex based discrimination complaint alleging he was terminated on the first offense because he is a male. All other violators (women) were just counseled. His complaint seeks $300,000 for unspecified damages.
Confidential Club Physique Representative’s Role
The reasons the other fitness instructors were just warned and not fired were because the violations were both single events and trivial. Jim’s recidivist violations by his own admissions occurred at his apartment. Furthermore, Jim was charming but lazy. This was a good opportunity to terminate him. He conducted the fewest training classes of any staff member and rarely signed up patrons for private instruction. The attorney for Club Physique indicated that it would be very difficult and costly to defend this case in court. Jim could probably charm a jury into a favorable verdict. Under no circumstances can you offer him reinstatement. The lawsuit publicity would be highly detrimental to the club’s image. Fortunately, the club has employment liability insurance. The insurance company has authorized you to settle this case for up to $75,000 (one year’s salary). If you feel the need to go above that amount, you believe the insurance company would authorize an additional $25,000. Anything over $100,000 would have to be paid by Club Physique. Anything over $125,000 and you will be fired. Negotiate the best deal.