Seven Legal Survival Tips for the Office Holiday Party – Asset Protection

This week marks the traditional start of the holiday party season for many businesses and most readers will attend multiple holiday parties and perhaps even host one or more. Attending a few of these events myself I’m always surprised to see employers with exemplary employee interaction throw all caution to the wind at this time of year, often with unpleasant results. While I certainly don’t want to scare you out of having a party and sharing the holiday spirit with your valued employees, we must address the way people really behave at these events and what it means for your practice.

As discussed in previous columns, employee liability is a major issue that we are always trying to be proactive about. Most employment liability centers around a lack of clear rules and procedures and perhaps most importantly, a set of well enforced behavioral expectations that they support. Below are some simple tips and issues to consider when planning your party. 

Invite your “guests” — don’t require their attendance.
Make it clear that the party is an optional perk, not a required work activity that is linked to their job requirements. If they are required to attend it raises your liability.

Lead by example.
“The boss” or some kind of hall monitor being present goes a long way. Be friendly and collegial but control your drinking, get people to eat, and make sure someone is clearly in charge and visible as the host. Many of our clients have been involved in lawsuits related to the conduct of their partners while everyone was making sure the guests were behaving. The rules apply to everyone, especially you and all management.

Set the tone with a dress code.
Make sure your colleagues and employees understand that this is a business event, not a nightclub atmosphere. Encourage appropriate dress for the event and set guidelines if you know some attending may dress in a manner that is inappropriate or overly suggestive. Communicate it clearly and in advance so your guests are not surprised or embarrassed.

Feed them first.
Put some food in your guests, before the drinks are really flowing if possible. This will keep them busy, slow their drinking and help ensure they don’t drink until they are full.

Control and limit the booze.
It’s not realistic to expect that many offices will abstain from serving alchohol completely, but this is the number one source of problems at most parties. Remember that you are responsible for just about everything that happens during and even after the party, including liability for those who may injure themselves or others (even people not in attendance) as a result of excessive drinking or as their lawyer will put it, “being over served.” You can do this by limiting service hours at the bar, providing drink tickets for a specific reasonable number of drinks, or by having the drinks passed and served at intervals.

Consider the venue and limit access if it’s at the office.
During the day everyone knows where they are allowed to be and what is and is not appropriate, the lines get blurred after a few cocktails. Consider hosting your party off-site. It’s often more fun and helps transfer liability on some issues to the “professional” hosts at a restaurant or other venue. Make sure the venue itself does not create additional liabilities or an environment that may promote inappropriate contact or behavior or excessive consumption; cross the “Home of the Barber Shop Shot Chair and Mechanical Bull” bar off your list. If logistics don’t allow that, limit access to the office and request that the computers not be used. The last thing you want to happen is to have four employees gather in a cubicle watching Internet porn (true story). Make sure that items that are sensitive, controlled, or dangerous are off limits and inaccessible. Remember that you may have strangers in your office like caterers or delivery people and that no one will be watching them.

Have a good time.
Have some genuine fun and make sure others are doing the same. We often see that “boring” parties create the most issues as people drink, fight, argue and gossip to keep themselves busy. On the other hand a well-organized party with a flow that keeps people talking, eating, moving, and interacting reduces the opportunity for much bad behavior.

Asset Protection for Your Medical Practice or Business , Learning To Fire the Right Way

By Ike Devji, J.D.

Imagine that after two decades in business with 100 plus employees and not a single EEOC or employment complaint your business is facing a class action lawsuit by disgruntled former employees discharged for cause. Imagine that these employees call every other employee they can reach and try to get them to join the lawsuit against you. Imagine that many of these employees are currently unemployed or underemployed due to economic conditions and are happy to have a new business, yours. Now wake up, it’s 2011 and all of this is real.

Over the last 45 days I have helped three different clients with issues similar to this fact pattern. In every single case the toxic employee that brought suit and/or encouraged others to do so was employed until the time of the suit, fabricated serious and offensive complaints at discharge or in anticipation of discharge. They also shared one other characteristic, in every single case they had been toxic or had been performing poorly for some extended period of time and should have been fired long ago but were not because of fear of conflict or because the manager of practice owner was trying to “be nice”.

I’m all for charitable giving, but I must be clear on this point; your HR practices are not the place for you to be “charitable” and can cost you and all your other employees your livelihoods. Part of the hesitation we see is based on the fact that most people don’t know how to fire and discipline in a safe and effective way, below is a simple outline we use to help you get a handle on a real “process” just like you have for most other operations in your practice.

Start early, even in the interview process and make all employees aware that you have a specific discipline process and high standards. Encourage them to communicate on any issues related to the workplace and their performance. Be clear about your expectations and requirements and how they will be enforced. Use a written job description that outlines their responsibilities and your performance expectations and then be ready to back it up.

THE FOUR STEP GUIDANCE AND DISCIPLINE PLAN:

VERBAL – Given instructions, corrective feedback and outline your expectations for behavior or performance that is below par or creates conflict with other employees or patients immediately.

WRITTEN – Upon the SECOND incidence of any undesired behavior or shortfall of the performance the position clearly required and which was clearly outlined in the initial interview and written job description (see how it is repeated, re-enforced and most importantly, DOCUMENTED?) provide specific written record of the issue, save it in their file and provide them notice by giving them a copy.

HAVE AN AFFIRMATIVE AGREMENT – As a last salvage attempt and to preserve a record, use an affirmative agreement that specifies the behavior you need to correct and have the employee agree to specific, immediate changes in their behavior and performance to conform to their job description and previous corrections. Use a written  form that they have seen before and that should be in their handbook.

FIRE THEM– If after the three above attempts don’t produce the desired results, you’ve done your part and it’s time to discharge the employee; again it is vital to have a process. Get keys, passwords, building entry keys and other security related issues covered and consider changing key locks and alarm codes. Have a witness if possible and follow a specific discharge process including an exit interview. Record the exit interview if possible so that the interaction is documented. If possible provide the employee with a final check they are due or any severance you may offer as a courtesy at the time of discharge, it takes some of the anger they feel away even if they know that being fired was their own fault. Finally, provide them an opportunity to provide feedback, either during the interview or in writing on a form you can provide; give them a chance to speak their mind and vent anger that might result in a lawsuit.

As always and as covered in my previous articles, get both EPLI (employment practices liability insurance) and a real, customized employment manual from a top employment law resource, not a free form of the internet or an outdated one you copied from another practice and get legal advice from an experienced employment law attorney sooner rather than later if you feel you have an employee that threatens your practice.

For more information, see our index under employmentlaw and visit http://lawsuitfreeworkplace.net/members/ my thanks to Douglass Lodmell and Paul Edwards for their guidance on these issues. This article originally appeared at www.physicianspractice.com, the nation’s leading practice manage,ment resource and appears here with permission.

How to Motivate and Retain Employees During Uncertain Economic Times

Deanna Hagan

Michael LaVance

By Deanna Hagan and Michael LaVance

The U.S. Department of Labor recently announced that employers added only 18,000 new jobs in June, the fewest in nine months and far below the 100,000 predicted by analysts. The unemployment rate remained just over 9 percent, with more than 14 million people unemployed.

 This disappointing news may point to a slowdown or stall in the country’s economic recovery, with gas prices, natural disasters and local government layoffs compounding the issue.

 In this current environment of continued economic uncertainty, employers may be searching for ways to motivate and retain employees that go beyond bonuses and raises. There are a variety of tactics that employers can implement, including:

Strong leadership

Employees rely on company leadership for guidance and strategic direction. Key executives should clearly communicate the company’s goals, challenges, achievements, and other noteworthy information in order to best foster employee engagement. Employees want to know what is happening in their workplace, and how they can help make a positive contribution. Sharing this information with employees is an important part of fostering an environment of engagement, leading to greater employee productivity and retention.

Encouraging company leaders to meet with employees at all levels, not just those in management positions, can lead to enhanced morale and engagement as well. Whether it is face-to-face meetings or video chats, providing one-on-one time helps unify managers and their teams.

Effective communication

While some companies think employees should be protected from less favorable news, this often paves the way for rumors to disseminate throughout the organization.  This can lead to mistrust, which often results in top performers making the decision to leave the company.  According to a 2010 poll conducted by the Society for Human Resource Management (SHRM), 47 percent of HR professionals found that open communication demonstrated by leaders is one of the most effective tactics for retaining and rewarding employees.

Business owners can avoid workplace apprehension by openly communicating with employees and inviting them to contribute ideas and voice concerns.  Not only does this open dialogue, but it also helps employees to feel valued.  Business owners may also uncover good suggestions that may have otherwise gone unnoticed.

Competitive benefits

According to the 2010 Employee Benefits Survey Report conducted by SHRM, 72 percent of HR professionals reported that the benefits offerings at their organizations have been affected in some way by the economic recession.  The poll shows that organizations are looking for ways to manage costs while at the same time deal with the escalating expenses of employee benefits.  With the current economic climate, employers should consider that offering competitive benefits to employees is a key factor in retaining staff.

Career development

Providing employees with opportunities to broaden their skill sets and enhance their abilities is another way to foster engagement, including in-house training and external education programs.  These opportunities demonstrate a long-term commitment to employees that can translate to greater retention rates. For example, additional training courses can help employees boost their current performance and also allow them to acquire new skills that can help the company stay ahead of the competition.  Businesses should also consider leadership training as part of a comprehensive career-development program. 

Rewards and recognition

There are many effective incentive programs that demonstrate the value placed on employees, yet do not focus solely on huge raises, big bonuses or expensive prizes.  A weekly lunch drawing or casual dress workday can prove to be just as powerful when it comes to aligning employees with company goals. 

Recognizing individual achievements on a weekly or monthly basis can also help communicate an employee’s value.  Whether it is highlighting an employee at a company meeting or publishing an article on the company intranet, acknowledgement from company leadership has a long-lasting impact on the individual and the entire organization.

Now more than ever, business leaders need to retain their best employees to ensure the long-term success of their companies.  One way to do this is to make sure employees feel valued and know the company is dedicated to helping them achieve their personal goals.  Companies that invest in their employees by cultivating an open environment with opportunities to thrive will find that employees are more motivated, and more likely to stay with them for the long term.  

Deanna Hagan is a regional manager with Insperity for the Denver and Phoenix sales offices.  Michael LaVance is a business performance advisor with Insperity in one of its Phoenix sales offices.  Insperity (NYSE:  NSP), a trusted advisor to America’s best businesses for more than 25 years, provides an array of human resources and business solutions designed to help improve business performance. Insperity Business Performance Advisors offer the most comprehensive Workforce OptimizationTM solution in the marketplace that delivers administrative relief, better benefits, reduced liabilities and a systematic way to improve productivity.  Additional offerings include MidMarket SolutionsTM, Performance Management, Expense Management, Time and Attendance, Organizational Planning, Recruiting Services, Employment Screening, Retirement Services, Business Insurance and Technology Services. Insperity business performance solutions support more than 100,000 businesses with over 2 million employees.  With 2010 revenues in excess of $1.7 billion, Insperity operates in 55 offices throughout the United States.  For more information, call 800-465-3800 or visit http://www.insperity.com.

Film Producer Ordered to Pay $3 Million in Sexual Harassment Suit

The headline could have read 100 different ways, with “Producer” substituted with “CEO” , “Athlete” or even “Doctor”. Imagine this was you, or the CEO or an exeuctive of your closely held business.

I won’t pretend to know all the facts of the case, but I know that this type of claim is often an extortion racket. The average sexual harassment verdict is $530K and employees win most of the time.

 

Remember, it’s a “he-said, she-said” game where a group of strangers is going to look at you and decide if they believe you or the person accusing you more that day, or if they like your lawyer more, or if you look like someone they don’t like…

Yes, it’s often that human and subjective an equation.  God forbid the accuser is attractive;  it makes that person beleivable, regardless of proof or facts.

In many cases the person accused writes a big fat check to “settle”  and avoid the expense, exposure and reputtational damage, not to mention what it does to their family.

  So how do we stop this? 

1. Don’t act in a way that creates opportunity for others to sue you;

2. Have clearly defined employment, conduct and employee dispute resolution policies that control how these issues are addressed;

3. Be a hard target that is UNCOLLECTIBLE – in advance of the threat ever being dreamed up.

READ THE STORY: http://www.reuters.com/article/2011/08/27/us-jonpeters-idUSTRE77Q07J20110827

Arizona Employers: Is Your Workplace Ready for Medical Marijuana?

With the passage of Proposition 203, Arizona recently became the 15th state to legalize marijuana for certain medical uses. Guest Author Rachel Weiss, an employment lawyer with Gammage & Burnham, urges Arizona employers to educate themselves about the Arizona Medical Marijuana Act and how it will affect the workplace.

 Is Your Workplace Ready for Medical Marijuana?

Emplyment Law Attorney Rachel Weiss

 Arizonans with qualifying medical conditions will soon be able to buy and use marijuana.  Some of them might be your employees.  Others could be filling out job applications in your lobby.  Employers need to adjust their policies and practices to comply with the new law and protect themselves from liability. 

 First, anti-discrimination policies must be updated to prohibit discrimination against employees or applicants based on their status as registered cardholders.  You can’t fire or refuse to hire someone because he is legally allowed to smoke pot, just like you can’t fire or refuse to hire a woman because she is a woman.

Second, drug testing policies must have an exception for cardholders who test positive.  Unless your card-carrying employees come to work stoned or spark up while on duty, they can’t be fired for failing a drug test.  You should modify your policy accordingly.

 Third, when a worker tells his boss that he uses medical marijuana, he is probably putting his employer on notice that he has a disability that brings him within the protections of the Americans with Disabilities Act.  Although the employer does not have to accommodate that employee by allowing time off to roll a joint, this knowledge may trigger your obligation to determine whether other reasonable accommodations are available. 

 This is only the tip of the iceberg.  The Medical Marijuana Act raises a bewildering number of questions in a variety of fields besides employment law, such as health care, land use, law enforcement and revenue, to name just a few.  Attorneys at Gammage & Burnham authored Proposition 203 and will be actively participating in the Department of Health Services’ rulemaking process.  If you would like assistance with your employment policies and practices, or if you have questions about any other aspect of the new law, please contact me at rweiss@gblaw.com.

Two Types of Liability Insurance Your Practice Needs (and likely lacks)

To address two common exposures that are often overlooked and important in protecting your business against a potential lawsuit;  employment practices liability and cyber liability, I turned to insurance expert Aaron Stauss at Gilbert Insurance  for some details on how you can be protected.

If you have employees, a website, or your business works with or stores personal, medical, financial or other valuable data, then your business has exposures that most likely are not covered in your general liability policy.

Employment Practices Liability

As the number and severity of employee practices claims rise, business with employees should have in place an employment practices liability (EPLI) policy to protect the business against costly litigation and / or damages.

An EPLI policy will provide coverage / defense cost from a potential lawsuit brought forth by an employee for…
• Discrimination (racial, religious, gender, age)
• Sexual Harassment
• Wrongful Termination
• Failure to Promote
• Retaliation
• Employee Related Libel, Slander, Defamation
• Mental Anguish, Emotional Distress
• Invasion of Privacy

According to the Equal Employment Opportunity Commission (EEOC), the average number of EPLI cases filed per year is 80,000 cases. A recent study finds the average payout on an employee-related claim is approximately $180,000. We could list hundreds of example of employee lawsuits, but to get the idea all you need to do is go to the EEOC’s website and browse through the hundreds of cases in the Newsroom.

Cyber Liability Insurance

As businesses continue to rely more on technology and the internet, it also increases the potential for data security and privacy breaches. The average cost of a data breach is $204 per lost record. Question… Is your computer network protected from…
• Hacker Attack
• Human Error
• Fraud
• Virus Transmission
• Employee Sabotage
• Power Failure
• Natural Disaster
• System Malfunction

Examples of the Impossible that Actually Happened

An employee of a financial institution loses a laptop with client data. Multiple lawsuits are pending with defense costs exceeding $700,000.

Computer hackers breach your electronic system containing your patients’ medical records, and you are sued by the patients for failure to protect private information.

Don’t pay out of pocket or spend your time defending yourself against a potential lawsuit. If you feel your company has a need for either EPLI or Cyber Liability call Aaron Stauss at Gilbert Insurance Group (480) 926-9020.  To learn more about their services and team, please visit their website at www.gilbertinsurancegroup.com.

Employers Beware: The Department of Labor is Out to Get You

Employers often think they understand wage and hour laws, but the fine print is more complicated than they realize and can lead to serious legal and financial exposures.  When the new Secretary of Labor announced that “There’s a new sheriff in town,” she wasn’t kidding.  As Emloyment Law Attorney Rachel Weiss explains, employers would be wise to heed the Secretary’s warnings and get good employment law counsel to review their polices and procedures now, BEFORE the exposure exists. –  Ike

Employers Beware:  The Department of Labor is Out to Get You

 This is not a threat, it’s reality.  The DOL’s focus has shifted from helping employers comply with the Fair Labor Standards Act (FLSA) to nailing those who do not.   

This is also not a secret.  In fact, watch for public service announcements in multiple languages featuring the Secretary of Labor and celebrities urging employees to call their hotline if they believe they are being paid unfairly.  (See for yourselves at http://www.dol.gov/wecanhelp/psa.htm)   Aptly named the “We Can Help” campaign, this initiative was launched just one week after the DOL announced that it is abandoning its practice of publishing Opinion Letters, which historically have provided important guidance to employers.  Reliance on DOL Opinion Letters has also served as a defense to liability for back-wages and other damages.  Instead, broader “Administrator Interpretations” will be issued that will not address the finer points of particular policies and practices, thereby requiring litigation to determine their application to the facts of each case.  

Then there’s the “Plan/Prevent/Protect” initiative, which proposes new regulations that will require employers to audit their pay practices, document how each employee’s exempt status and pay calculations are determined as well as the reasons why certain individuals are categorized as independent contractors and not employees.  Employers would need written plans and be required to track how they are implemented.  The failure to do all of this to the DOL’s satisfaction will be deemed noncompliance and result in sanctions and/or costly litigation.  The pending Employee Misclassification Prevention Act (H.R. 5107, S. 3254) seeks to impose similar obligations. 

If you think I’m trying to scare you, you’re right.  Most employers also don’t realize that once a violation is established in an FLSA lawsuit, the burden is on the employer to prove why double damages should not be awarded, and the employer will be liable for the employee’s legal fees.  Moreover, the owner of the company, or whoever was responsible for the decisions that led to the violation, will be held personally liable along with the company, regardless of laws that limit personal liability in other contexts.  Unlike cases brought under Title VII for discrimination, there are no administrative hoops to jump through before employees can go to court.  And remember, too, that wage and hour claims are not usually covered by insurance. 

Now more than ever, employers need to develop not just a plan for compliance, but a culture of compliance.  Consider conducting an internal or external audit of your employee classifications and pay practices, and seek advice from an employment attorney.  Wage and hour laws are complex and nuanced, and the DOL clearly is not interested in educating you.  If that were the case, it would have created an employer “help desk.”  Instead, it beefed up its enforcement staff with 250 new investigators and got famous people to reach out to employees. 

Lest there be any misunderstanding, I do not mean to imply that the DOL should not be an advocate for employee rights or that employers should be able to shirk their obligations under the FLSA.  Just consider this a public service announcement for the other side.    

Rachel Weiss practices labor and employment law with the law firm of Gammage & Burnham in Phoenix.  If you have questions about wage and hour issues, you can reach her at (602) 256-4448 or rweiss@gblaw.com.

Court decision helps shield employers with good policies against harrasment lawsuits

Once again we are shown that proactively addressing employment law (and all other business planing issues) helps provide the best Asset Protection available while the most effective options still exist. In this brief update, Employment law attorney Rachel Weiss shares a case that illustrates the value and cost efficiency of having the right tools in place BEFORE you get sued or face other forms of employee claims.

A recent 8th Circuit decision should serve as a reminder to employers that a well-written anti-harassment policy provides a valuable defense to harassment claims. 

In Cross v. Prairie Meadows Racetrack and Casino, Inc., the employer’s policy explained that there would be zero tolerance for sexual harassment and listed various ways that employees could seek help if they believed they had been subjected to harassing behavior, including talking to a supervisor or going directly to Human Resources.  The policy further provided that an employee who is dissatisfied with the resolution of a complaint could address her concerns to a member of upper management or the CEO.  The plaintiff had complained to her supervisor that she was being harassment by her co-workers, but she was not satisfied with the way the situation was handled.  Although the employee was aware that there were other avenues for reporting the incidents, she failed to take advantage of any of them. 

 The Court concluded that even if plaintiff’s allegations were enough to establish a hostile work environment, summary judgment for the employer was justified because the employee failed to act reasonably in attempting to stop the harassment. 

Lesson:   Employers with effective sexual harassment policies are in a significantly better position to defend against a harassment claim.  

An effective policy should include, among other things, multiple avenues of redress.  Employees and managers need to be educated regarding the policy, which can be accomplished by conducting periodic sexual harassment training.  Employers also should have a procedure for taking immediate action upon receiving a complaint of harassment and should follow that procedure consistently. 

Please contact Ms. Weiss directly at (602) 256-4448 or rweiss@gblaw.com if you have any questions or would like assistance drafting and/or implementing a proper sexual harassment policy for your business while it will be effective and proactive.

Warning For Employers: Service Helps Job Applicants Lie to You

Warning For Employers:

 

Service Helps Job Applicants

 

Lie to You

Please read this important warning about a troubling web site brought to my attention by my friend and employment law expert Rachel Weiss. Many of my clients have employees that are in sensitive positions, and whose actions can potentially place those I serve in jeopardy – this service creates huge liability. I’d love to see the owners of the company below SUED when one of their “clients” kills or injures someone or creates some other harm, theft or loss because they got a job based on the false history and credentials they created. This is especially terrifying for medical businesses.

Thanks, Ike

If any of you are involved in any way with your company’s hiring process, you need to be aware of a service called Career Excuse.

Career Excuse essentially provides job applicants with a completely or partially fabricated work history, complete with fake company names and fake references with phone numbers.

Real people will answer your phone calls and confirm whatever the applicant states in his or her resume. Career Excuse has become so popular that they’re not taking new “subscribers” at this time. (Of course, individuals currently filling out applications and submitting resumes may already be signed up).

Visit their website – CareerExcuse.com – for more information. In particular, read the “What If I Get Caught?” page, which assures its clients that lying on a resume is not a crime.

Please do not hesitate to contact me with any questions about this or any other employment or litigation issue. Rachel R. Weiss (602) 256-4448 rweiss@gblaw.com

Warning for small businesses and those who serve them about Employee Lawsuits

The link below is to a new article shedding light on the potential costs of employee lawsuits, an issue you have likely heard me talk about before. The Second link is to my piece on how we FIX this. Feel free to share with friends and clients who have employees.

Overtime lawsuits finding new targets :Small employers get hit as others wise up

http://sacramento.bizjournals.com/sacramento/stories/2010/02/01/story1.html?b=1265000400%5e2807911&ana=e_pft

SAFELY DEALING WITH EMPLOYEE EXPOSURE IN A DOWN ECONOMY:
http://arfinance.blogspot.com/2009/06/dealing-with-employee-exposure-in-down.html