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robintek

Apr 01
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WHY EARTHQUAKE INSURANCE IS IMPORTANT EVERYWHERE

By Personal Perspective

When most people think about earthquakes in the United States, California and Alaska are the two states that come to mind. However, earthquakes can happen in any part of the country. Many people move out of areas that are prone to earthquakes after experiencing one to escape the possibility of a repeat experience. The truth is that there is no place that is completely safe from earthquakes. They are a very real threat that everyone must consider and plan for. One of the most vital aspects of proper preparedness is having ample insurance coverage.

Earthquake damage isn’t covered in the majority of Homeowners policies. This is also true for business policies. Both types of policies specify that damage from earth movement is not covered. Although actual damage from a quake might not be covered, property insurance might provide coverage for fires and other incidents that occur as a result of it. Policyholders should scour their policies to understand the specific exclusions. If the policy seems difficult to read, it’s important to contact an agent with any questions.

Many people think they won’t experience a major earthquake during their lifetime. This is especially true for those who live in areas where earthquakes happen every 100 years or less. Although many people might not experience a strong earthquake like the recent Virginia incident, there are over 5,000 incidents recorded each year by the USGS. Damage from earthquakes has been recorded in all 50 states in history. There have been reports of damage in 39 states alone since 1900. This proves that although some people might not live in areas that commonly experience earthquakes; they’re still not immune to the threat.

Earthquake insurance is available as a rider, which is added to a business or personal property policy. People who have one of these types of coverage should contact their insurer to find out what coverage options are available. Since they’re unpredictable and happen suddenly, it’s best to be prepared for all types of disasters. Earthquake insurance is so important that it can’t be stressed enough. Although the majority of people assume all California homeowners have this type of coverage, research indicates that about 12% actually have this type of insurance. The nation’s average is less than 12%.

Earthquake insurance costs vary by location, building type and the age of the building. It’s much more expensive to insure older buildings. In addition to this, brick structures are more expensive to insure. Buildings with wood frames withstand the force of earthquakes better, so it’s cheaper to insure them.

To offer an example, a home with a wood frame in Washington might cost between $1 and $3 per $1,000 of coverage. The same home might be less than $.50 per $1,000 insured on the East Coast. However, a brick home might cost between $3 and $15 per $1,000 in the Pacific Northwest. In most East Coast locations, the same home might only be between $.60 and $.90 per $1,000.

Every earthquake policy also has a deductible. This means that homeowners must pay upfront for a portion of the damages before the insurer pays the remaining amount. The deductible might be up to 20% of the structure’s replacement value. The percentage depends on the insurer and the location of the structure.

There are also options for renters. There are coverage policies that protect personal property. In addition to this, they usually cover living expenses if the building becomes uninhabitable after an earthquake. It’s important for renters to keep a list of belongings and their values. Major appliances, furniture, electronics and other expensive items must all be documented properly. A new way of creating a record of belongings is making a narrated video tour of the home and focusing on belongings. Contact one of our insurance agents to secure the earthquake coverage that is right for your individual needs.

Apr 01
Love0

PROFESSIONAL ERRORS AND OMISSIONS: PROTECT YOUR PRACTICE

By Business Protection Bulletin

Professional Liability insurance funds losses caused by errors or omissions in the rendering of services. What does this mean? Professionals are human and errors do occur. In medicine and science, the client benefits from the best course of action suggested by an experienced practitioner at the time the service is rendered. The best course of action, though, has some risk of failure. It is wise to cover this potential.

Some examples of typical professional liability claims include: An attorney misses a filing date for a lawsuit and the client loses the right to sue a surgeon removes too little, too much, or the wrong tissue. A hair stylist misuses chemicals and burns the client. A computer consultant provides incompatible software, causing damage.

Some examples of actual, but unusual claims: Although machinery is tagged as under repair, a building inspector is held responsible for a new system because they merely reported the tag-out rather than investigating the nature of the repair required. A real estate agent sold a home that the listing agent reported as located in the wrong school district. The selling agent did not correct the error although they were never asked to verify the information. A stockbroker advises a client to sell some stock and balance their portfolio. The client refuses and loses money. The client sues for mismanagement.

Most professional services contracts offer advice, design, expertise, politics, negotiations, or any skill associated with a particular profession. Beyond laws and regulations, professions self-govern by way of setting minimum performance and ethical standards. When these performance standards are not met, either by an error occurring or an omission of an important service duty, a potential claim results. Expert witness testimony is often a feature of litigation in these claims to determine the definition and scope of the malpractice.

Doctors, lawyers, and certified public accountants (CPAs) spring to mind when discussing Malpractice insurance, Professional Liability, or Errors & Omissions insurance. How about architects, engineers, office designers, barbers, dog groomers, bankers, clergy, web site designers, software producers, or computer consultants? Any profession that provides a service instead of a product has a professional liability exposure. Almost any product includes some element of design. So, what separates a product from a service?

A service is defined by the acts of the professional, not by the finished product or outcome. Concrete contractors are covered by completed operations insurance; construction managers who select and supervise the concrete contractor fall under professional liability. If you provide a professional service, advise clients, act on behalf of a client, or provide an outcome or consequence rather than a specified product or completed operation, you need Professional Liability insurance.

Professional Liability policies define the acts, errors, and omissions covered both in general and specifically. Restrictions or exclusions are enumerated as well. Standard forms exist for many professions; however, different forms are used and it pays to have knowledgeable advice.

Reputation creates value in any professional practice. One major difference between standard business and professional liability is the professional’s right not to settle. The downside to this decision, however, is the policy limit of liability decreases for that claim to the accepted claim offer, including costs and legal fees, a very risky strategy. Claimants and their legal counsel prefer to negotiate with an emotionally distraught practitioner than a dollars and cents experienced adjuster who knows the potential court outcome.

With reputation and time away from the practice already at risk, remove the strain of total financial ruin from the equation and obtain Professional Liability insurance.

Apr 01
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THE BASICS OF WORKERS COMPENSATION INSURANCE

By Business Protection Bulletin

Employers must take the proper measures to ensure workplace safety. However, there are accidents even in the safest workplaces. To be prepared for employee accidents, employers must have Workers Compensation coverage. This insurance will provide valuable benefits for the employer and the employee who sustains injuries.

It’s important for employers to understand what is covered by a Workers Compensation policy. Each state has varying statutes regarding Workers Compensation, so it’s important to speak with an agent to learn about individual state statutes. Each state determines what injuries are covered and to what extent. They also determine how much coverage employers should purchase. Businesses that expand to other states must consider the different rules of each state they operate in. Workers Compensation policies cover injuries and accidents that happen while an employee is on the workplace premises or away from the workplace on the course and scope of performing their duties.

Workers who are injured receive the necessary medical treatment. There are several guidelines that outline what treatments and diagnostic tests are considered as necessary. Benefits for income replacement are based on whether the employee’s disability is temporary or permanent. Although some states allow the benefits to be paid for the entire length of the disability, some place limits on the amount of time that benefits can last.

Many employers wonder whether they need Workers Compensation coverage or not. In most cases, unless employees are paid on commission or they’re company partners, employers need to purchase workers compensation coverage. There are some states that exempt employers with only a few workers. However, it’s important to speak with an agent about individual state laws regarding workers compensation insurance.

There are individual state rules regarding where an employer can purchase Workers Compensation insurance. It is not part of a BOP, so it’s necessary to purchase it in addition to this policy. Speak with our agents to learn how to get this valuable coverage.

The premiums paid by employers vary by the nature of their business. For example, employers who hire workers to do dangerous jobs must pay more for Workers Compensation insurance. If the nature of the business is dangerous and is likely to result in a serious injury or disability, it’s important for employers to plan on paying more. Experience ratings can be beneficial for employers who must pay more initially but are able to maintain a low claims volume. Speak with an agent to learn how experience ratings work and how they can help premiums become lower. There are several other important aspects of workers compensation insurance that must be understood. Contact an agent to ensure that ample coverage is in place.

Apr 01
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WHY BACKGROUND CHECKS ARE ESSENTIAL FOR ALL EMPLOYERS

By Business Protection Bulletin

With more jobs becoming available today, there is a major problem presenting itself for employers. Employees who are applying for jobs are lying about important aspects of their lives. In most cases, the truth may be a disqualifying factor. To avoid the hassle of hiring an unfit employee, it’s important to conduct a background check.

According to the ADP’s 2009 Hiring Index, 46% of the 1.7 million applicants reviewed had discrepancies in their resume’s employment, credentials, education or reference checks sections. In addition to this, 37% of applicants had traffic violations or convictions, and 6% had criminal charges within the past seven years. While not all applicants lie about convictions, others may fabricate details that make them look more appealing. This practice, which is commonly called resume padding, is a method used by people who aren’t qualified for a position to attempt to obtain it. It’s important to be able to identify both omissions and lies.

Understanding What Is in a Background Check. Not all background checks are the same. There are hundreds of online services that advertise cheap and fast background checks. However, these companies provide limited information, and often have limited access to databases that are not regularly updated. In order to get the most accurate and recent records it is best to use state resources.

How to Perform a Background Check. Usually, the office of the Highway Patrol is the best place to begin a search. Some jobs require a prospective employee to manage a budget and handle money. If this is the case, it’s a good idea to request a credit check also. It’s important to have the applicant’s SSN, date of birth and any last names or aliases they’ve used in the past 10 years. Be sure to have the applicant’s approval before performing a background check. Social media sites, such as Facebook, can also be beneficial when researching a potential employee. Keep in mind that people may make fictitious profiles and claims on social media sites, so this information shouldn’t replace what is available on a background check. However, sometimes discrepancies between resumes and social profiles are enough to raise a red flag against a potential employee.

Be specific in what information you decide to verify with a background check or credit check, and only perform those checks when there is a direct correlation with job duties. For example, don’t request a credit check for an employee who won’t be controlling a budget or working with cash. However, if an applicant will be caring for disabled individuals, it’s important to verify that they don’t have any past charges of abuse, assault or neglect. Always use common sense to determine which bits of information need to be verified.

Employer Reference Considerations. Verifying employment and inquiring about an applicant’s work ethic with a previous employer is important. However, it’s also important to make the reference call count. Never rely on the phone number provided by the applicant. Either look up the number through an online phone directory or use a reliable source to verify the number. Although it isn’t common, sometimes applicants provide erroneous phone numbers that may not belong to the previous employer they listed. In some cases, employees might provide a friend’s number instead. That friend will often provide a false reference to make the employee look good. Be sure to ask pointed and concise questions to the applicant’s previous employer. The following questions are good examples:

  • What are the applicant’s strengths?
  • How does the applicant deal with stress and conflict?
  • In what ways could the applicant improve?
  • How do the applicant’s skills with other team members rank?

The best time to perform a background check is after extending an offer for employment. However, be sure to tell the applicant that their employment with the company is contingent upon them passing a background check. It’s always a good idea to state upfront in the job posting that a background check will be performed for qualified applicants. This is usually effective in discouraging applicants who know they have a checkered past and intend to lie about it. Again, the most important thing to remember is to always obtain an applicant’s written permission before ordering a background or credit check for them.

Apr 01
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SHOULD I USE A PERSONAL AUTOMOBILE POLICY FOR MY COMPANY CAR?

By Construction Insurance Bulletin

Automobile insurance covers the owner of the car, the driver of the car, and/or an insured driving a temporary vehicle. If the company owns the vehicle, the company needs to provide liability coverage for its risk of operating the vehicle on the road.

As a driver, you need Liability insurance even if you don’t own a car. Drivers are held responsible regardless of ownership. Entrepreneurs who own a company car and a personal car need both policies.

If you drive your car for business, the company still needs Liability insurance to protect against the risk of operating a vehicle on a public road. Tangential issues include:

Pick-up trucks and vans are excluded from business use in many personal automobile policies. Claims will be denied under these conditions. Courts have been “piercing the corporate veil” recently. If the business and individual are judged to be too closely tied financially, corporate limited liability can be lost. Separating business from personal usage avoids IRS problems when allocating deductible expenses. Keep liability clearly separated. A business issue can destroy your unrelated personal wealth. If employees are transported in your personal car, Workers Compensation coverage blurs into personal liability. Is driving to lunch business or personal? If another employee drives your car causing you an injury, you are exempt from your Liability policy.

Too many scenarios can occur to confuse commercial coverage with personal coverage. If you work for a company as an outside sales representative and drive your own car, use a Business Use Personal Policy. If the company owns the car, your Personal Automobile coverage will provide Liability insurance for you personally, but not the company. If you don’t own a vehicle, but drive a company car personally, purchase a Non-Owners Personal Policy.

Whichever entity owns the vehicle – titled name – requires Liability insurance. Commercial Automobile coverage is designed for automobiles, trucks, vans, pick-up trucks, assorted delivery vehicles, even dump trucks. Rating, that is premium generation, considers multiple drivers of mixed experience and more miles driven.

Personal Automobile policies do not anticipate non-family operators on a regular basis. Usually, the application asks who will be driving the vehicle regularly. It is not favorable to list several employees.

The cargo transportation industry has its own truckers form. Garages and repair shops carry Garage Keepers coverage. The insurance industry creates forms and policies that fit the unique needs of different business models.

Apr 01
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WHY EVERY CONTRACTOR SHOULD REQUIRE WORKERS COMP INSURANCE

By Construction Insurance Bulletin

Good risk management plans allow Workers Compensation coverage for any hired subcontractors. Since subcontractors are not able to hide behind statutes for contracts, Workers Compensation coverage may be required whether there are statutory provisions or not.

For those who are in contractor and subcontractor relationships, over 40 states have statutory regulations regarding Workers Compensation benefits. Employees of subcontractors must also be offered Workers Compensation benefits if they are injured. The benefits are paid by the immediate employer or the company hiring the immediate employer for the job. As a rule, general contractors face the responsibility of offering Workers Compensation to employees of uninsured subcontractors. This is true regardless of the number of employees the subcontractor has. Premiums are also assigned to the general contractor.

General Contractors & Independent Contractors. It is important to avoid confusing the subcontractor-general contractor relationship with an owner-independent contractor relationship. A general contractor is the entity the owner contracts with to complete various projects. A portion or all of the tasks are then assigned to subcontractors. In order for a general contractor’s relationship to function, there must be three separate parties. These parties include the owner, an independent contractor and a subcontractor. If any portion of a job is subcontracted, a general contractor’s status changes to independent contractor.

An independent contractor is a party contracting directly with an owner or principal to complete a job. In most cases, independent contractors perform jobs that the principal or owner does not normally do. The entire job is completed by the independent contractor and employees. Keep in mind that they are not considered employees of the principal or owner.

As a rule, principals are not usually financially responsible for an independent contractor’s injured employees. They are also not responsible for the injuries of employees of subcontractors hired by the independent contractor. General contractors are financially responsible for an uninsured subcontractor’s injured employees.

Principals & General Contractors. If the subcontractor and general contractor both lack Workers Compensation coverage, the principal may be sued for out-of-pocket expenses incurred by an injured worker. Since the principal does not qualify as a general contractor or employer, financial responsibility is not usually an issue. Although employer status is nonexistent, there are other theories of liability that may constitute the need to pay compensation. For example, failing to provide a safe workplace could result in the principal paying an injured non-employee individual. In such a case, a Workers Compensation policy or a General Liability policy usually provides adequate defense.

It is important for general contractors and principals to require any contracting entities to provide Workers Compensation coverage. When an independent contractor or subcontractor purchases this coverage, the act shows that the party does not have any misconceptions about an employer-employee relationship. Contracts between principals and general contractors should be specific in placing responsibilities. In the contract, a general contractor should agree that failing to require this insurance could result in personal statutory responsibility for the subcontractor’s injured employees. The general contractor should also agree to hold the principal harmless in an injury case.

Establishing Relationships with Subcontractors. Although relationships between contractors and subcontractors are most commonly found in the construction business, they are also found in other industries. For example, cities hire special consultants to analyze traffic patterns. The consultant then hires engineers to perform various studies. They may also perform maintenance on traffic lights, or the work may be contracted out. There are plenty of other examples. However, all contractors and subcontractors are subject to the laws regarding Workers Compensation. To avoid facing financial responsibility for injured workers, it is important for general contractors to require all lower tiers of workers to carry their own Workers Compensation insurance.

Apr 01
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MAKING CONSTRUCTION WORKERS’ SAFETY A PRIORITY

By Construction Insurance Bulletin

The National Institute for Occupational Safety and Health (NIOSH) constantly looks for ways to lower the amount of work-related injuries and illnesses. For example, they work closely with the construction industry to find ways to protect workers from situations and substances that are potentially hazardous.

Hazard Identification. One of the main concerns of NIOSH is reducing hazards with falls, electrocutions and toxicity. Some of the accomplishments include:

  • Publicized hazards of lead-based paint and recommended lead exposure reductions to prevent poisoning of workers who are involved in construction of bridges and other various structures composed of steel.
  • Pushed for proper elevation of work practices along with utilization of fall arrest and fall prevention systems.
  • Provided assistance to manufacturers working to redesign and reduce asphalt emissions during the process of paving.
  • Released the description of electrocutions commonly occurring when workers were moving, working from or erecting scaffolding units.

Successful Programs. NIOSH conducted investigations, which led to considerable changes in the workplace. They also contributed to the start of successful programs that save money and lives.

Preventing Electrocutions of Crane Operators and Crew Members. NIOSH researchers found that cranes making contact with power lines were the source of more than 10% of work-related electrocutions. Researchers developed precautions and procedures to ensure safe operation of cranes near power lines.

Controlling Exposure to Asphalt Fumes during Paving. When paving roads, waterproofing and roofing, workers are exposed to fumes of molten asphalt. These fumes cause skin diseases, eye irritation, respiratory tract irritation and cancer. NIOSH works with asphalt manufacturers to develop systems designed to reduce exposure to asphalt fumes by trapping emissions from equipment.

Preventing Injuries and Deaths Caused by Falls. Falls from ladders, scaffolds and buildings are the leading cause of workplace fatalities in the construction industry. NIOSH developed recommendations after investigating more than 70 fall incidents. Their suggestions include:

  • Implementation of programs specifically for fall protection.
  • Correct use and selection of fall arrest and fall restraint systems.
  • Site-specific evaluation of hazards that may cause falls.
  • Correct maintenance, erection and use of access equipment.
  • Implementation and maintenance of covers on floor openings, guard rails and other safety barriers.

Monitoring Lead Toxicity in Bridge Workers. Since lead-containing paint is used to coat most bridges, workers who are involved in bridge construction and repair face exposure to extremely high levels of lead. To contribute to a reduction of lead toxicity for these workers, NIOSH provided funds for the Connecticut Road Industry Surveillance Project, which is commonly called CRISP. On a yearly basis, CRISP saves the state of Connecticut more than $2 million in Workers Compensation funds. Workers’ lead-blood content decreased by 50% after the launching of this project. CRISP offers the following benefits:

  • Surveillance systems designed to monitor the blood levels of workers.
  • Medical examinations and necessary procedures to reduce and monitor lead exposure in occupational settings.
  • On-site technical assistance for help in reducing exposure to lead.
Apr 01
Love0

IGNORING WORKPLACE DEPRESSION WON’T MAKE IT GO AWAY

By Workplace Safety

At any given time, one in 10 employees suffers from depression. The repercussions of depression in the workplace-in terms of absenteeism and lost productivity-is estimated to run at $52 billion annually. An additional $26 billion is spent on medical care each year for the symptoms of depression. According to employees who suffer from depression, this illness hampers their ability to work effectively in many ways: 83% lack motivation, 82% have difficulty concentrating, 62% find tasks overwhelming, 45% arrive late for work or leave early, 24% experience chronic physical pain, and 20% have difficulty dealing with coworkers.

This data, reported by the University of Michigan Depression Center (UMDC), underscores the impact that employee depression has on a business’s bottom line. The Depression in the Workplace study was conducted through interviews with depressed employees (those having received treatment for depression within the last three years), middle managers, and benefit managers.

According to the study, many businesses think they are addressing the problem of employee depression, yet employees disagree. The good news is that in companies implementing “best practices” for dealing with workplace depression, depressed employees report better control over their disease and, consequently, they become more effective at work.

Half of the employees surveyed said they had been so depressed that they missed work, typically one to three days a month. When depressed, 38% of employees said they couldn’t carry out their normal workplace responsibilities. Surveyed managers placed depression’s impact on employee productivity as greater than that caused by drug or alcohol abuse, heart disease, or diabetes.

Though most of the employees (89%) said they had some type of mental health care coverage, 75% delayed seeking treatment for depression and 36% received only partial treatment. According to the survey, the failure or delay in seeking treatment resulted not from employees’ lack of familiarity with their mental health benefits, but from a concern that their depression might affect their career advancement and how they are viewed at work.

While many of the surveyed businesses felt that they were taking steps to help depressed employees deal with their illness, these steps were not necessarily a reality for employees:

  • 83% of benefit managers said their companies had taken steps to ensure that employees with depression receive help, but only 37% of the businesses had conducted proactive depression education programs;
  • 65% of the benefit managers said that employees have access to an employee assistance program (EAP), but only 14% of the surveyed employees ever contacted the EAP; and
  • 78% of benefit managers agreed that lost productivity cost their businesses more than treating the depression would, but only 11% of the businesses offered depression screenings.

The survey identified a number of “best practices” that companies can implement to help employees deal with depression. These included providing access to appropriate outpatient care; providing information that enables employees to identify symptoms of the disease and the importance of seeking treatment; offering screening/early detection mechanisms; having guidelines for job accommodation that enable afflicted employees to seek treatment; providing supervisors with training on dealing with the issue; and having return-to-work plans for employees who have been absent due to the disease.

Employees of companies that utilized such best practices reported higher levels of job satisfaction and were less likely to view their illness as a barrier to career advancement. Also, among employees who received treatment, 88% said their effectiveness at work improved as a result.

Given the cost of depression-both on its victims and their employers’ business interests-the identified best practices represent compassionate and smart workplace measures.

Apr 01
Love0

BETTER HOUSEKEEPING RESULTS IN A SAFER WORKPLACE

By Workplace Safety

Even the smallest workplace hazards have the potential to be the most dangerous. Whether there are protruding nails or slippery floors, the potential for danger is everywhere. With a few simple guidelines, these threats can be identified and reduced. The key idea to remember is that a disorderly workplace equals a dangerous workplace. Keeping order in the office or on the job site is the best way to ensure safety for employees.

Cluttered workplaces lead to a variety of illnesses and injuries. For example, if an employee sustains a laceration from a protruding rusty nail, he or she may be susceptible to tetanus. Not all employees receive regular vaccinations. In addition to this, not all employees are diligent about promptly disinfecting and treating a wound. If both issues were true, that small cut could lead to thousands of dollars in medical bills. Some injuries may be much more serious. For example, an employee who hits his or her head on an overhanging object may wind up with a head injury. Although such injuries might simply be treated with ice and rest, others might be fatal. For example, individuals who take some blood thinners are more susceptible to life-threatening damage from such occurrences. Unkempt workplaces where food or other perishable objects are present create a danger for illnesses.

When the workplace is cluttered, many employees develop a negative attitude toward safety. If employers do not show the utmost concern for safety, employees will feel that there is no reason for them to care either. The Occupational Safety & Health Administration clearly states that all passageways, places of employment, service rooms and store rooms should be kept orderly and sanitary. Employers are responsible for ensuring all hazards are removed and the workplace is clean.

To make employees happier and the workplace safer, follow these helpful housekeeping tips:

  • Keep the walkways free of debris, boxes, tools and other equipment.
  • Delegate various housekeeping tasks to each employee. Everyone should contribute to ensuring a safer workplace.
  • Make sure all pallets are neatly stacked in a safe place.
  • Check the workplace regularly for slick floors, damaged rugs, carpet rips, loose boards and other tripping hazards.
  • Keep all floors maintained, and always place signs indicating wet floors after cleaning or mopping.
  • Make sure there are no exits or aisles being blocked by equipment, boxes or other items.
  • Remove overhanging or protruding objects, and pay special attention to doorways, walkways and common areas.

Fire protection is another important issue to consider with workplace hazards. Some hazards lead to fires, and many employees do not know how to handle them. Be sure to educate all staff on the following fire safety facts:

  • Blocked aisles may help fires spread faster, and they may also prevent firefighters from reaching the flames.
  • Crowded storage areas cause fires to spread quickly and may block the spray from sprinklers or fire extinguishers.
  • Avoid obstructing vents, heating equipment, lighting and electrical equipment.
  • Never block access to fire extinguishers or other fire safety equipment.
  • Since many fires are caused by accumulated debris or oil, it is imperative to keep all areas clean.

By following these simple housekeeping suggestions, it is possible to make the workplace much safer. Educating employees about safety and fire hazards is a on ongoing process. In addition to providing this information upon initial employment, be sure to offer continuing education. Employees who know how to keep the workplace safe and prevent accidents will be more comfortable at work.

Apr 01
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TAKE TIME TO CREATE A PROACTIVE POLICY ON WORKPLACE DISCRIMINATION AND HARASSMENT

By Workplace Safety

Discrimination and harassment are two occurrences that no business owner wants to see happen in their workplace. These can create major troubles for a business as they disrupt the workplace, lower employee morale, and potentially cause lawsuits that could cost the employer hundreds to millions of dollars.

Employers are legally expected to take proactive stances on discrimination and harassment within the workplace. Those that fail to address such issues are financially vulnerable should an employee bring about a lawsuit. In fact, in relation to discrimination and harassment claims, the U.S. Supreme Court has held that employers can even be liable when they weren’t directly aware that it was occurring.

What Is Discrimination? Discrimination is defined by laws at the local, state, and federal levels. Discrimination on the basis of national origin, race, religion, gender, and creed are prohibited by Title VII of the Civil Rights Act of 1964. The Age Discrimination in Employment Act of 1967 (ADEA) protects workers over 40-years-old from being discriminated against based on their age. Title I and V of the Americans with Disabilities Act (ADA) of 1990 prohibits discrimination against individuals with disabilities. Additionally, many states and municipalities have enacted local laws prohibiting discrimination in areas like pregnancy, parental and marital status, sexual orientation, and political affiliation.

What Is Harassment? Harassment is also defined by laws at the local, state, and federal levels. Harassment is verbal, physical, or written acts that cause an employee to feel uncomfortable in their working environment or that interfere with an employee being able to perform their job. This can include jokes, drawings, emails, notes, slurs, offensive language, and cartoons that either directly or suggestively reflect negatively on a protected class.

What Can Employers Do about Discrimination And Harassment?

1. Have a discrimination and harassment prevention policy. Having a formal and comprehensively written policy that clearly outlines your commitment to having a workplace free of harassment and discrimination will let employees know these acts won’t be tolerated. A lot of employers make such a formal statement within their employee handbook. Employees can sign a statement of understanding on discrimination and harassment as they receive and read their employee handbook. This practice may also be combined with mandatory employee training sessions on harassment and discrimination.

2. Have a policy outlining what steps employees should take related to harassment and discrimination. It’s important for employees to know a formal investigative process will happen and that they have a safe means to report behaviors that leave them feeling harassed or discriminated against. This can be approached a number of different ways. Some employers direct their employees to report harassment and discrimination complaints to human resources or office management for investigation. Other employers may prefer to have the chain of command followed and direct their employees to make reports to an immediate supervisor. Either way, the most important element is that the method of reporting is confidential, easily accessible, and clearly stated.

3. Let employees know that your management team takes your policy just as seriously as you do. Remember, employees are far more likely to believe in and follow the policy when they see that you and your managers truly believe that the policy is important. Take every opportunity to reiterate that employees can always safely come forward when they feel treated unfairly. Also, ensure that employees know the degree of harm discrimination and harassment causes for those both directly and indirectly involved.

Business owners in today’s ultra-competitive market are often faced with absorbing a plethora of information on everything from legal and financial issues to marketing strategies. This can tempt many business owners to procrastinate properly addressing harassment and discrimination. Do remember that the potential financial impact alone is reason enough to make time to create and communicate a proactive policy on workplace discrimination and harassment.

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