Skip to main content
Monthly Archives

September 2015

Whistleblower Policies Help Businesses Stay Ahead of Problems

By Risk Management Bulletin

quitamwhistleblower (1)Many business owners are caught off guard when problems arise in the workplace, even if those problems have existed for some time. Even employers who have good employee relationships are often kept out of the loop with regards to potential problems within the business. The fact is that employees are a business’s most valuable asset, and when a safe and open reporting culture is developed, they can be a business owner’s best defense against escalating issues that get out of control.

 

Create Anonymous Reporting Policies

Instituting a safe and open reporting policy requires the establishment of both identifiable and anonymous reporting options. Anonymous reporting options are especially important as many employees are unwilling to report their direct manager for ethical or other violations for fear of retaliation. Reporting options should also be available in a manner which is comfortable for employees. In plant environments where computer access is limited, an old-fashioned written form and drop box is the best option. Other options for identifiable reporting include computerized forms or even a designated email address.

 

Investigate Each Report

The key to successfully heading off problems is to investigate every issue reported by employees in a timely manner. In smaller organizations, the job of investigating reports often falls to the owner. In larger organizations, an individual may be appointed to investigate reports as part of their daily activities. No matter who the task falls to, it’s vital that it be performed regularly. Allowing too much time to pass between the initial reporting and the investigation allows evidence to be hidden and creates distrust with the employee who reported it.

 

Develop a No-Retaliation Policy

Getting employees to open up about problems in the organization is sometimes tough. One major reason is that they fear future repercussions such as job loss, reduced raises or being passed over for promotions. To alleviate these fears, businesses should develop and communicate a strict no-retaliation policy. This policy should emphasize that no employee will be negatively penalized for reporting any workplace issues. It should also clearly spell out the penalties for management and other employees for violating this policy.

 

Terminating Employees the Proper Way

By Other
Employee-TerminationAt some point, every employer is faced with the unpleasant task of terminating an employee. Whether for poor performance or a necessary workforce reduction, employee terminations must be handled with care. There are many legal issues involved with a termination which can arise if it is performed improperly and without the proper documentation. Employers should use caution to follow the proper protocol any time that a termination of employment is required at their business.Document Deficiencies

Terminating an employee for failure to perform their duties requires significant care in documenting their inability to perform. This documentation is vital to support a defense in case the employee claims discrimination or files a lawsuit. Documentation should be written and contain information about the specific violation or deficiency, when it occurred and the repercussions being implemented because of it. It is vital that both the employee and their supervisor sign this document. A copy should also be provided to the employee for their files.

Additionally, these incident reports should be consistent with any previous documentation about the employee, such as annual performance reviews. A stellar performance review followed by a sudden write-up for nonperformance is a red flag for terminated employees and their lawyers.

Allow for Problem Resolution

Many employment terminations are called into question when employees claim that they were terminated for something they didn’t even know about, such as a required job task or qualification. This potential legal issue can be avoided by adding a section the incident report. After documenting a violation by an employee, define a game plan for remedying the situation such as additional training. Additionally, set a defined time frame for re-evaluating the employee to ensure that the deficiency or violation has been resolved.

Don’t Beat Around the Bush

When a termination is inevitable, some employers attempt to ease the sting by sidestepping the real reason. Some may say that they are laying off multiple employees when the real reason is poor performance. Employers must not only tell the employee the real reason for termination but should also supply it in writing. Be sure to specify the specific company policy that the employee violated or the area in which they are deficient in.

 

 

Stopping Workplace Violence Before It Starts

By Risk Management Bulletin

workplaceviolenceWorkplace violence encompasses a wide range of activities and is something that every employer should be prepared to deal with if it occurs. Unfortunately, many employers are not trained to identify the initial stages of workplace violence, which can allow it to escalate into a more serious event.

Types of Workplace Violence

When many think of workplace violence, they automatically think of the shootings which are so prevalent in national news reports. However, there are many other forms of violence, including verbal as well as physical. Physical violence can include physical fights or damage to another employee’s personal property, such as their car. Verbal violence often comes in the form of threatening to do harm to another employee. This can occur face-to-face, via email, text message or phone voice mail messages.

Identifying Potentially Volatile Situations

One potentially volatile situation is during the termination of an employee. Even well-mannered individuals can become irate when they lose their job. This can lead them to issue threats such as “I’ll get you for this”, or “this isn’t over”. Employers must take these threats seriously for the sake of their other employees and the safety of the workplace.

While this situation is clearly a threat, others aren’t so obvious. However, there are some clear behaviors that employers and employees can watch for which indicate a problem.

  • An employee exhibits disruptive behavior such as yelling, cursing, verbally abusing others or seaming visibly agitated beyond reasonable limits.
  • An individual exhibits physically threatening actions but doesn’t actually touch another person. These actions include moving aggressively into another individual’s personal space and oral or written threats.
  • The individual exhibits violent behavior including physical assault, possessing a weapon, throwing items, hitting walls or slamming doors.

Ensuring Workplace Safety

Businesses must train all employees on how to handle situations of workplace violence. In addition to helping employees identify threatening behavior, employers should instruct them on the proper procedure to follow in such situations. Employees should know exactly who to contact and how. In addition, they should feel comfortable pulling a fire alarm or calling emergency response if the act of violence is severe enough.

 

Is it Legal for a Landlord to Require Tenants to Purchase Renters Insurance

By Personal Perspective

housing-rentRenters insurance covers your possessions if they’re damaged, lost or stolen. Although it’s a wise investment all renters should consider, it is optional. However, your landlord may require you to purchase renters insurance. Is this requirement legal?

First, understand that renters insurance might not be your landlord’s idea. His or her homeowners insurance company may require all tenants to carry renters insurance. This way, your landlord’s insurance company isn’t responsible to replace all the tenants’ belongings.

Second, your landlord’s insurance policy only covers the building and ground. It does not cover tenant belongings. If there’s a fire, you lose your belongings and you don’t have an insurance policy, you won’t receive money to replace your possessions.

Third, landlords may require tenants to do anything as long as it’s legal and not discriminatory. You may choose to comply with the requirements and sign the lease or move to another rental unit.

If the cost is one reason why you may not want to buy a policy, consider the costs of not having coverage. Can you afford to replace your electronics, wardrobe, jewelry and collectibles? What happens if someone trips while visiting you, falls down the stairs and breaks his or her arm? Can you afford the medical bills? Renters insurance covers these expenses and protects you financially. It also gives you peace of mind because you know that you’re covered.

Plus, renters insurance is cheaper than you think. A policy can provide thousands of dollars in coverage for less than $20 a month. Customizing your coverage can provide even bigger savings when you increase your deducible, choose actual value rather than replacement value and bundle your renters and auto insurance policies.

When your landlord requires you to purchase renters insurance, understand that it is legal. It’s also beneficial for you. You never know when another tenant will buzz in a burglar or forget to turn the stove burner off. So discuss your renters insurance options with your agent today as you purchase required coverage that also gives you peace of mind.

Seven Strange Things Your Homeowners Insurance May Cover

By Personal Perspective

force_placed_bank_insurancepageYou already know that your home insurance policy covers necessary repairs after storms and replaces stolen valuables. Did you know it also covers seven unique and strange things?

1. Spoiled Food

When the power goes out and ruins the food in your refrigerator or freezer, many home insurance policies reimburse you for up to $500.

2. Reward Money 

After a robbery or burglary, most homeowners are eager to find the person who’s responsible. If you do that, the person is convicted and you receive a reward, up to $1,500 of the reward money could be covered by your home insurance policy.

3. Volcano Eruptions

Your home insurance policy probably includes “open perils” coverage, which includes volcanic action. You’re usually only covered for damage caused by volcanic lava or ash, but review your policy for specific details. Purchase a separate earthquake policy if you need protection from tremors or other volcanic eruption damage.

4. Falling Objects

Satellite debris, meteors and other space junk can fall from the sky and damage your home, property and belongings. Your “open peril” coverage pays to repair or replace your possessions because of this damage.

5. Tombstone Damage

Tombstones and grave markers pay tribute to your loved ones, and most home insurance policies cover cracks, graffiti and other headstone damage.

6. Clean Up Costs

Cleaning up an unattended death, suicide or murder takes a specialist. If one of these events occurs in your home, your insurance policy might cover the cost.

7. Liability Away From Home

Even when you’re not home, you can be covered by the liability portion of your home insurance. For example, if you collide with another cyclist at the park, your homeowners insurance could cover his or her injuries.

Home insurance policies are indeed diverse, so be sure you invest in a policy today. Your insurance agent can explain more about how home insurance works, what it covers and how much coverage you need. Now’s also a great time to update your policy to ensure it’s adequate for your needs. It pays to be covered!

4 Reasons You Need Flood Insurance

By Personal Perspective

Force-placed-insurance1-articleFloods are the number one natural disaster in the U.S., and you can be a victim even if you don’t live in a flood zone. Are you prepared? Your standard homeowners insurance probably doesn’t cover flood damage, so consider four reasons why you need flood insurance.

1. You Live in a High-Risk Area

You probably already know if you live in an area that’s at risk for flooding, but if not, check out the flood risk map drawn by the National Flood Insurance Program (NFIP). It helps you determine whether your home sits in an area that frequently floods.

2. Your Mortgage Lender Requires Flood Insurance

Mortgage lenders that are federally regulated or insured typically require borrowers to purchase flood insurance for homes located in high-risk areas. However, your mortgage lender may also require you to purchase flood insurance if your house is located in a moderate-to-low risk area.

3. You Can’t Afford Flood Damage Repairs

One foot of water in your home can cause $27,150 of damage per 1,000-square-foot, according to the NFIP. Average flood related claims can total $38,000. Do you have that amount saved? If not, purchase flood insurance for financial protection and peace of mind.

4. You Want to Cover Your Home and Belongings

The average flood insurance policy costs $650 a year, and it typically covers three basic parts of your home and property.

*Building coverage protects your home’s physical structure
*Contents coverage protects your belongings valued between $8,000 and $100,000
*Replacement cost coverage replaces your home if it’s a single-family residence and is insured with a policy that covers at least 80 percent of the total replacement cost.

After you decide to buy flood insurance, check available policies through the NFIP. Be sure to ask your insurance agent about available coverage, too, because private policies are often more affordable than those offered by the NFIP. Buying a flood insurance policy is a small investment that yields big rewards if a flood strikes. Talk to your agent today as you protect your investment. It’s a wise decision.

Do You Need Auto Insurance for a Vehicle You Never Drive?

By Personal Perspective

car-2 (1)Every vehicle on the road needs insurance coverage. You might be able to drop insurance, though, on a car you don’t drive. Learn more as you ensure you have the right insurance for all of your vehicles.

1. Someone else will use your car while you’re out of the country for an extended time.

Even though you’re working or traveling outside the U.S. for a year or longer, you can still remain a registered vehicle owner and allow someone else to use your car. Contact your insurance agent to add a driver to your policy or add your car to the driver’s policy.

2. You keep a car for someone even though you’re not a licensed driver.

There are several reasons why you may not drive. 

*You never got your license
*You’re disabled
*You gave up driving because of old age
*You lost your license due to reckless driving or a DUI
In these cases, you can still have a vehicle in your name but be excluded as a driver on the policy. Tell your insurance agent why you aren’t licensed and provide details on the licensed driver. In most cases, the licensed driver must be someone in your household.

3. The vehicle will not be driven for months at a time.

You might want to buy a classic car and store it in the garage until you can fix it up or maybe you can’t pass up a deal on a vehicle for your 14-year-old son. These circumstances can be grounds for owning a car that’s not insured. Discuss your options with your insurance agent, though. All vehicles with liens must typically be insured. And while you may be able to drop insurance on a vehicle that’s non-operable and not parked on public land, some states require all vehicles to carry liability coverage.

When you don’t drive a vehicle you own, you might be able to drop auto insurance coverage. Since auto insurance requirements vary by state, discuss your needs with your agent, and make sure you have adequate coverage for all your unique circumstances.

10 Workplace Safety Committee Mistakes to Avoid

By Employment Resources

Safety committees play an important role in many workplaces. Not only do they write safety policies, but they also lead training’s, resolve conflicts and implement new ideas. If you’re part of the safety committee at your workplace, consider these mistakes you’ll want to avoid.

  1. Fill the committee with only management. The most unbiased and fair safety committees include people from all levels and departments.
  1. Allow a passive person to lead the group. Because safety can save lives and deeply affect a company, a safety committee’s leader must be willing to take a stand, lead discussions, make tough decisions, engage each member and ensure participation.
  1. Refuse to write a mission statement. Even if the state or insurance company mandated your safety committee, you still need a mission statement that defines each member’s role and ensures committee efficiency.
  1. Don’t offer training. Your safety committee will only be effective if it’s staffed with members who understand health issues, safety analysis and accident investigation.
  1. Meet sporadically and don’t require members to attend. The most effective safety committees meet regularly, and each member prioritizes attendance.
  1. Don’t record meeting minutes. By publishing the minutes, you summarize the issues you discuss, ensure accountability and jump-start the next meeting’s agenda.
  1. Don’t set goals. Measurable and achievable short term and long term goals ensure safety precautions are put into place.
  1. Complain. There’s a time and a place to complain about general problems with your employer. Safety committee meetings are designed to discuss legitimate safety issues only.
  1. Forget to follow through. If your committee makes goals or assigns a task to someone, follow through and make sure that task gets done.
  1. Start one committee for all locations. Individual locations may require unique safety guidelines, so each site should have its own safety committee or contribute to the discussions.

A safety committee plays a crucial role at your workplace. If you’re part of it, refuse to make these 10 mistakes to ensure it operates smoothly and efficiently.

 

9 Facts About Employment Background Checks

By Employment Resources

bgcheckDoes your employer require a background check during the hiring process or when deciding whether or not to renew employee contracts? If so, know your rights and nine facts about employment background checks.

  1. Employers can request a variety of information. Your employment history, criminal record, education, financial history or social media usage is all fair game during employment interviews. Refusing to answer questions could prevent you from being hired.
  1. Potential employers cannot request medical information during interviews. They may ask certain questions about your medical history after they hire you, though.
  1. Most employers cannot request genetic information, including your family medical history. This information is private except in limited circumstances.
  1. Employers may not discriminate against you based on your background, which includes your nationality, race, gender, religion, age, disability or medical history. Additionally, employers may not ask you different interview questions or fire you based on these factors.
  1. Employers can hire someone to do background checks for them. In these cases, they must get your permission in writing first and must give you a copy of the report if information in it prevents them from hiring or retaining you.
  1. You can contact a background reporting agency to correct mistakes and forward a corrected report to the employer.
  1. You can refute negative information in a background report. For example, you can provide documentation to a potential employer that shows you can do a job despite a disability or criminal record.
  1. The Federal Trade Commission (FTC) enforces background reports that are required for employment. Contact them at www.ftc.gov or 1-877-382-4357 if an employer obtains your background report but does not get your permission first.
  1. The Equal Employment Opportunity Commission (EEOC) regulates employment discrimination. Contact this agency at www.eeoc.gov or 800-669-4000 if your employer asks unauthorized questions or does not hire or retain you because of your age, gender, nationality, race, disability or medical history.

Now that you know 9 facts about background checks, you’re prepared for your next job interview or employment review. Use the information to protect yourself from unlawful background checks.

 

Employer-Sponsored Health Clinics Can Cut Healthcare Costs

By Employment Resources

Lacks Enterprises decided in January 2014 to open two health care clinics for their 5,161 employees and dependents. One year later, the company reported a 35 percent decrease in employee payroll contributions. As important, employees are now more actively managing their health and well-being. This trend could benefit you, too.

The Lacks Enterprises Health Clinic Story

In 2012 and 2013, Lacks Enterprises discovered that its cost per employee was rising in large part to healthcare costs. The Grand Rapids, Michigan company decided to open two primary care clinics in an effort to cut costs and improve worker health.

The clinic met its goals and more. In 2014 alone, the Lacks Enterprises health clinic saw 680 patients and diagnosed 2,607 chronic conditions. The company also curbed rising healthcare costs and realized a decrease in absenteeism.

The Clinics See Results

Since opening the clinics, Lacks Enterprises has seen numerous benefits. Financial savings cover all costs associated with running the clinics, and the company and employees enjoy a simpler healthcare system.

Employees also benefit from the clinics.

  • The 35 percent payroll deduction for healthcare costs is gone thanks to the clinics and HSA high deductible insurance plans that link wellness participation and HSA contributions.
  • 52 percent of Lacks employees who use the clinics enjoy more holistic treatment options and more time with the doctor.
  • Over 1500 patients received a preventative health assessment, and 41 percent of those patients returned for follow up.
  • Up to 83 percent of the patients waited less than 10 minutes for their appointments.

Lacks Enterprises clinics are open Monday through Friday with some extended hours during the week. CareATC, an Oklahoma healthcare company, manages the clinics’ day-to-day operations and proudly uses data analytics and technology to identify employees with chronic conditions and improve the health of Lacks’ employees and their dependents. The company works with local network provider Priority Health and third-party administrators who handle outreach, specialty services and claims.

If your company could benefit from decreased healthcare costs and improved employee health, talk to your human resources manager. Employer-sponsored health clinics benefit everyone.