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6 WAYS TO AVOID EMPLOYMENT LIABILITY CLAIMS
When an employment-related lawsuit occurs, emotions run high and personal issues are often brought into play. Even when claims are meritless, defense costs can be substantial. The impact on morale and the reputation of your business can also be significant. It’s in the best interest of your business to reduce potential employment-related issues and strengthen your defense if an action is brought. Protect your business and your assets by following these six steps:
1Invest in an Employee Handbook that Includes Employment-at-Will, Harassment and Discrimination
Provisions
A good first step is to invest in an Employee
Handbook. Having policies in place that address termination of employment, discrimination, and harassment can reduce potential exposure in employmentrelated matters. Your handbook should include an employment-at-will statement and a zero-tolerance policy toward discrimination and harassment. Although there are templates available online, it is recommended you have an attorney draft or at least review the handbook to ensure that all policies are compliant with applicable state and federal laws
2Train Employees and Supervisors on Employment-Related Issues All staff should receive basic training on employment-related issues. Review the policies as a group and keep good notes or recordings of the discussions. Give your employees the opportunity to ask questions to clarify the intent of the handbook guidelines. • Take every complaint seriously • Clarify the types of behavior that are unacceptable in the workplace. • Immediately refer every complaint to
HR or the designated employee for investigation. • Document performance issues and be honest on performance evaluations. • Address and stop conduct that could draw allegations of discrimination or harassment. • Establish a clear process to file a harassment or discrimination complaint • Be fair and consistent
3Document Everything Employment claims often come down to one’s word against another’s. Maintaining detailed documentation of incidents in question, immediately upon discovering them, creates a stronger defense in any potential claim. Documentation should be clear, free from emotion or unnecessary commentary, and include performance concerns and any resulting consequences. An employee should always sign the documentation acknowledging any issues had been brought to his or her attention.
4Discourage Jokes and Banter within the Workplace Most employees want to be free to enjoy relationships with their co-workers. While a fun and relaxed atmosphere is to be encouraged, too much leniency can lead to hurt feelings or other concerns. What may seem to be harmless jokes can silently be taken as harassment. Comments or jokes related to another employees health, age, religious or political views, color, or sexual orientation should be forbidden. The days of off-color jokes and hazing are long gone and have no place in or around your office. Be vigilant in ensuring that employee interactions are professional and appropriate.
5Regulate Employee Internet and Email Use With easy access to the internet, computers, and smart phones employees are naturally drawn to non-work activities such as online shopping, social media, videos, or surfing for fun. Ensure all employees are aware that these tools are used in an appropriate manner without exception. Have a policy prohibiting the access of pornographic or inappropriate websites and consider software that blocks inappropriate websites. Be aware that not all employees share the same views politically.
6Establish an Open-Door Policy It’s easy to say you have an open-door policy, doing it can be a challenge. As a business owner or manager, you must be willing to listen, without judgement or argument, to concerns of your employees even if you might disagree with their viewpoint. Encouraging open and honest communication is the easiest way to avoid employment-related problems. Employees should feel comfortable discussing employment-related issues. Protect your business and your employees by allowing those concerns to be identified early and addressed before a true problem develops.
Prevention and awareness are the best tools you can implement to avoid costly Employment-Related lawsuits, but it is no guarantee you won’t be sued. Even a frivolous lawsuit can result in thousands of dollars in legal fees. To better protect your business and assets consider purchasing an Employment Liability Practice Insurance policy (EPLI). EPLI coverage is not part of a business insurance policy and must be purchased separately. Consult your insurance agent to discuss adding this valuable and affordable type of policy. n
Todd Shepard is the founder of Shepard & Shepard Insurance Solutions, speaker, trainer, and regular contributor to the Front Row. For more information and a review of your dealer insurance policy visit shepquote.com or toll free 855-396-0488.
