Posts Tagged ‘avoiding lawsuits’

Case Study, Part II – Medical Practice Reduces Risk Through HRO

Monday, February 22nd, 2010

Our last post introduced a growing medical practice with their share of Human Resource challenges. In this second and final post, we ‘ll look at the HR solutions offered by CPEhr and the concrete results they experienced.

HR Solutions

Upon entering the HR Outsourcing relationship with the practice, a CPEhr Human Resources Specialist immediately began to review their policies and employee documentation. Many gaps in employment protocol were identified. An array of new employment forms were created, compliant procedures were implemented and new guidelines were put into practice. The Director and Office Manager received training on proper employee review and termination procedures, and their designated HR Specialist was invited to attend exit interviews and assist in the termination process.

“I have run the office for more than a decade,” says the Director, “But knowing CPEhr is here to guide me through all employee matter offers tremendous peace of mind. Now, instead of being distracted by minor personnel issues, I can focus on the practice. CPEhr has truly become our partner.”

The most critical assistance occurred when the practice decided to outsource their billing function and to layoff the entire department. CPEhr assigned several HR staff to assist in the layoffs, with proper termination procedures, protocol and severance packages that were in the best interest of both the practice and the employees. The Director sums up the incident succinctly: “We could never have done this on our own.”

Real Results

Since joining CPEhr, he feels that the day-to-day protection he experiences in the area of employment exposures is immeasurable. “I now have tremendous peace of mind. CPEhr has become our ‘go-to resource.’ Without this type of relationship we end up making our own decisions, without proper knowledge of the law, and will ultimately make a mistake. You think you can use common sense, but common sense and the law rarely match!”

The Director says the benefits of CPEhr were immediately realized, as the new systems and processes were implemented and functioning within 30-60 days. “I recognize the reality that as the practice grows. So too would the need to hire an HR Manager. However, by outsourcing to CPEhr , we don’t need to spend the money on another hire and can use those funds to invest back into patient care and clinical research.”

HR Outsourcing Case Study – Medical Practice Reduces HR Risks Through HRO

Thursday, February 18th, 2010

human resources outsourcingSometimes change is hard. But when this medical practice recognized their existing HR systems were inadequate in the face of rising employment challenges, they selected a HR Outsourcing and Professional Employer Outsourcing relationship to assist them in reducing their HR risks and exposures. Our next two posts will look at their challenges, and the solutions offered by CPEhr.

Company Background

This medical practice was founded in 1980 with the mission to provide the highest quality health care combined with clinical research and education. It is currently one of the few cardiovascular practices in the country that balances private practice with academic medicine, and runs one of the world’s largest cardiac transplant programs. They currently employ over 30 employees, but are opening two more locations and are expecting to significantly grow their employee base in the coming months.

It was obvious to the Executive Director of this prestigous medical practice that his time would be best spent on providing superior patient care and conducting scientific research. Managing employee issues should have been the last thing on his mind. Unfortunately, it wasn’t.

Business Challenges

As the practice grew in size and prestige, the Director recognized the critical role Human Resources played in his practice. “We do not have a dedicated HR staff,” he explains, “But I understand that human resources can’t be put on the back burner. HR is still a critical part of our practice.” With the lack of sufficient internal HR resources they struggled to standardize employee practices and stay abreast of changing employment regulations. While the Director and his Office Manager continued to personally handle the employee relations, an incident pushed them to consider outsourcing their human resources to a professional firm.

An argument ensued between two front office staff, and the altercation ended with one employee threatening to physically harm the other. The event was witnessed and the employee was let go. A short time later she sued the practice for race discrimination. Even though, at the time, the Director was sure he was doing the right thing, he ended up in an 8 month lawsuit with the EEOC that cost him hundreds of hours of time and distracted him considerably from running the practice. While he ultimately won the case, he realized it was time to work with human resource professionals. He needed a firm who would help him structure an HR system to prevent this from recurring, and to take over the administration of a lawsuit if one ever occurred again in the future.

“As our firm continues to grow and we open new offices, managing the staff in multiple worksites is only going to become more complicated,” he says. He invited CPEhr to present their outsourcing HR solution, and quickly engaged their services.

Our next post will review the HR solutions implemented by CPEhr.

Increased Litigation and Enforcement Predicted for 2010

Monday, January 25th, 2010

Guest post by: Stephanie R. Thomas, Ph.D.

According to Fulbright’s 6th Annual Litigation Trends Survey Report, companies are seeing a litigation wave that is expected to continue to swell in 2010.  That expectation is based on experiences during 2009, when 83% of respondents reported that new litigation has been commenced against their organizations, up from 79% in 2008.  Stephen C. Dillard, head of Fulbright’s global litigation practice, states:

Generally, litigation rises in an economic downturn as regulators tend to step up enforcement, laid-off workers head to court, and companies need to file more suits in order to collect money owed.

Employment litigation is expected to increase in 2010.

The poor economic conditions and increased layoffs, coupled with new laws and expansion of existing laws, are likely to lead to an increase in claims filed.  According to Rich Meneghello, the managing partner in the Portland, Oregon office of Fisher & Phillips, “all signs point to the trend [of increased litigation] continuing into 2010, especially as job growth remains stagnant and out-of-work individuals seek rewards through litigation”.

Increased enforcement by the Department of Labor.

Experts are also anticipating an increase in enforcement by the Department of Labor.  Secretary Solis said in a release, “In early 2010, the department will launch a national public awareness campaign titled ‘We Can Help’ to inform workers about their rights…  We will not rest until the law is followed by every employer, and each worker is treated and compensated fairly.”  The Department of Labor is scheduled to receive $13.3 billion in funding for 2010, an increase of $121 million from the previous year.  According to a DOL press release, “with these increases, [DOL’s] worker protection agencies will be able to vigorously protect wages and working conditions of the 135 million workers in more than 7.3 million workplaces.”

Additionally, the EEOC is slated to receive $367 million in funding for 2010.  This represents an increase of $23 million from the previous year.  The increase in funding may lead to more lawsuits alleging discrimination based on age, gender, race, color, national origin, religion, or disability.  The EEOC’s proposed regulation to implement the ADA Amendment Act of 2008 would make several significant changes to the definition of ‘disability’, greatly expanding who is covered by the statute’s provisions.


Be proactive to reduce the risk of lawsuits.

While no one can be certain what 2010 will bring, employers should prepare for litigation and for increased enforcement actions.  Experts are recommending a proactive approach.

  • Employers should have a thorough understanding of what laws and regulations apply, and review their policies and procedures to ensure they are in compliance.
  • Internal audits should be conducted to identify any potential problem areas, and corrective action should be taken where appropriate.
  • Revisiting documentation and document retention practices is vital; having appropriate documentation can, in some circumstances, prevent litigation, and will be critical should the employer be faced with litigation.

For more information on protecting your company, contact CPEhr, a Human Resources Outsourcing and Professional Employer Organization.

Guest post by Stephanie R. Thomas, Ph.D.

Dr. Thomas heads the Equal Employment Advisory and Litigation Support Division of Minimax Consulting. The Division provides consulting services, dispute resolution support, and expert testimony to Fortune 500 companies, major law firms, and local, state, and federal governments and agencies.  The Division specializes in labor and employment issues in both advisory and litigation contexts.

Website: Minimax Consulting

Disclaimer

Three Employment Priorities in a Slowly Recovering Economy

Thursday, January 7th, 2010

Our last post reviewed some of the economic indicators that are leaving economists guessing when we will pull out of the current recession. Overall, the indicators would support the premise that the weak economy is slowly strengthening, but the numbers are still mixed. Small businesses in particular are finding this transitional period as particularly challenging.  Additionally, when we consider how deep the recession has been with over 7.2 million jobs lost since it began, it would be wise to assume that it might take another year or so before things are relatively back on track.

Despite the uncertainty, businesses should take stock of what is required to succeed and use this time to prepare them for the bumpy road ahead as the economy slowly recovers. When considering the future, small businesses should focus on three key employment strategies in 2010: stabilizing operating costs, reducing employment risks, and enhancing overall employee performance.

Stabilizing operating expenses.

Following dismal sales in 2009, employers will be looking to reduce unnecessary expenditures and maintain a lower operating budget until revenues increase. While there are hundreds of areas to be considered, employment costs typically account for the single highest percentage of overall operating expenses in a business. These expenses include both hard and soft costs. Beyond payroll and tax overhead, hard costs are related to health insurance premiums, workers’ compensation, recruiting fees, payroll processing and legal fees. Soft costs include employment administration, management time, employee reviews and compliance. Reducing these employment costs can significantly impact an employer’s bottom line.

Reducing employment risks.

There is a direct correlation between an increase in employment related lawsuits and difficult economic periods. Employers should beware that a downturn in the economy is often accompanied by an uptick in employment litigation.  As such, employers should prepare themselves by reviewing and training managers on termination policies, updating their forms and policies, and ensuring compliance with payroll-related labor laws and regulations. As the economy strengthens, employers may begin to rehire lost personnel. They should review proper interviewing techniques, update their employee handbooks, and have new-hire packets and offer letters reviewed for compliance.

Enhancing employee performance.

Even as companies begin hiring again, it will take some time before the workforce is back to pre-recession levels. What this means for the average business is that managers are trying to maximize productivity with a smaller workforce. The inevitable result is a more stressful work environment as both employees and management struggle to find a healthy balance of productivity despite the decreased manpower. Employers will be required to find new ways of incentivizing, motivating and training their workforce to maintain a positive attitude while managing increased workloads.

Employers that proactively pursue these three employment priorities will be a strong position to weather the uncertain economic times that lie ahead.

Sexual Harassment Training a Must-Have for Employers

Tuesday, December 22nd, 2009

Despite great strides to combat sexual harassment over the past decade, the problem continues to plague the workplace, as recent,  high-profile cases illustrate. Just this month for example, actress Liza Minnelli settled a 100-million-dollar sexual harassment lawsuit filed by her former chauffeur, M’Hammed Soumayah, who accused Minnelli of beating him  and forcing him to sleep with her. A confidential agreement between Soumayah and the singer was reached. This case illustrates that no individual or organization is immune to sexual harassment, and that companies must do more to educate their managers and staff.

California Assembly Bill (AB 1825)

Over two and a half years ago, commencing January 1, 2005, a California Assembly Bill (AB 1825), was signed into law requiring all California employers with 50 or more employees to provide two hours of sexual harassment training for supervisors, managers and lead employees every 24 months. Employers also have a responsibility under California law to provide workplace harassment prevention training to non-supervisory employees as well. However, that very same year, the EEOC received close to 13,000 charges of sexual harassment, with the average costs recovered in monetary benefits increasing dramatically. In 2006, total monetary compensation paid out in sexual harassment related cases exceeded $48.8 million, which was 31% higher than the $37.1 million paid out in 2004.

While common wisdom, and the law, would dictate employers would begin training their staff on proper behavior in the workplace, the reality doesn’t match up. According to a recent study by TrainRight Solutions, 41 percent of U.S. employers still don’t provide preventive training for sexual harassment, with cost the leading factor for ignoring education in this area.

Employer Responsibility

The Supreme Court deems training “essential” and the EEOC guidelines state that it is the responsibility of all employers to train all employees. Respect in the workplace, when properly demonstrated, can not only boost employee moral and productivity, but can greatly reduce the potential liabilities of an employer. Legal experts agree that the more pro-active an organization, the more likely they will reduce their employment liabilities.

Many HR consulting and outsourcing firms provide answers and assures employers that taking preventive measures is the right approach. Helping companies establish appropriate policies and deal with complex sexual harassment issues is key to minimizing employer risk.

Sexual Harassment Training is a Must

A comprehensive Sexual Harassment training course should cover the following topics:

* The laws that prohibit unlawful harassment in the workplace
* Specific forms of harassment
* How to prevent harassment and hostile environments
* Identify retaliation and why it is illegal
* The rights and responsibilities of all staff members
* Consequences of harassment suits
* What to do in the even of a harassment charge
* How to conduct an investigation

While at first glace it may appear that implementing sexual harassment guidelines may be costly, employers should recognize the higher expenses related to fines or penalties for an ill-educated workforce. And aside from protecting the business for lawsuits, training the staff on preventing unlawful harassment is just the right thing to do.