5 Ways Risk Management is Reshaping Employment Law

One of the most important things a company can do is take steps to avoid potential lawsuits.  Such efforts are a quintessential element and goal to be attained in ‘risk management’.  Many companies develop a sexual harassment policy, employee handbook, safety procedures, and other guidelines to ensure that the business runs efficiently and avoids legal problems in the future. 

Over the years, the list of employment law concerns only grows larger and more onerous:

• Affirmitive Action Plan Issues
• Americans with Disabilities Act (ADA) compliance issues
• Employee manual and personnel policy development
• COBRA issues
• Contract and tort matters
• Discrimination matters based sex, sexual orientation, gender, age, disability, national origin, race or religion
• EEOC and Department of Human Rights claims
• Federal Civil Rights Act
• Family Medical Leave Act
• Hiring and firing; job interview practices
• Occupational Safety and Health Administration (OSHA) compliance matters
• Privacy and employee monitoring issues
• Title VII claims, including sexual harassment and hostile work environment issues
• Wage and hour disputes
• Wrongful termination matters.

Insurance coverage is available (at a price, of course!) for certain employment law exposures, but not all.  That is why hiring an excellent insurance broker, along with  competent and experienced legal counsel is wise for all concerned.   Risk management also means employers must be sure to train all their employees in the substantive areas of law of concern, some of which are listed above.  However, training on the front end is only part of the battle.  Employers must make sure proper supervision and monitoring for compliance exists as well, coupled with timely and adequate follow up if employee non-compliance is occurring.  Finally, periodic auditing for employee program compliance is essential to ensure the effectiveness and viability of a company’s operations.

The bottom line is, don’t wait for bad things to happen when effectively implemented risk management programs can help avoid most employment law non-compliant incidents and costly consequences.

If you have further questions concerning this subject, continue and follow our Risk Manager on Your Side or contact Bruce Smith at Goosmann Law Firm, 410 5th Street, Sioux City, Iowa 51101.  Phone: 712-226-4000.