Labor and Employment Law for Finance Officers: What You Need to Know
By: Amanda J. Barisich, Esq., Stefani C Schwartz, Esq.
Labor Law is a topic that Human Resources and in-house counsel deal with on a regular basis. Partner Stefani Schwartz, Esq. and Associate Amanda Barisich, Esq. open the Employment Law and Labor Law discussion for Finance Officers in the first of this summer long series.
The workplace today is different. Employment law has drastically evolved over the decades. Now more than ever employers and employees must be aware of their conduct and their surroundings. What may have been “acceptable” then can easily be grounds for a lawsuit today.
Where do we Even Begin?
- Understand that the law is constantly changing and evolving.
- The courts are always interpreting the law in new ways as it fits into our ever evolving society. No matter how much we may question or disagree, these are the laws we have to abide by.
- Educate yourselves and your staff.
- Be up to date regarding workplace issues.
- Educate your employees.
- Setup proper training and procedures for educating new employees.
- Empower your employees to protect the company.
- Give your employees the right tools to do the job you require of them.
- When in doubt, always ask for clarification.
- There is no such thing as a stupid question. Always best to err on the side of caution when in doubt.
It All Starts With You
As Finance Officers, you are leaders and must train Managers and Supervisors to be good role models.
- You are held to the same standards as the employees you oversee
- Sometimes even a Higher Standard due to your managerial role.
- However, you set the tone and must be the example
- If you cannot follow your own rules, you cannot expect your employees to follow.
- “Be the change you wish to see in the world”
But it Doesn’t End with you
If you don’t have a dedicated Human Resources Manager, you still need someone to perform that function. You MUST have a person who can answer specific questions regarding company policy and someone to whom complaints can be brought. You as a Finance Officer, are not that person.
- Policies must be in place and routinely updated
- You must stay current with the law, “I did not know” is not a defense.
- Proper and up-to-date NOTICES must be conspicuously displayed in the workplace
- Employees are fully aware of their rights and company policy.
- Supervisors and employees must be trained in order to recognize and eradicate unlawful conduct
- If the employer does not properly train its employees, then the employees cannot properly know what is the proper procedure or act, and what is not.
This is When You Call Us
Maintain a line of communication with your legal counsel. We are here to help you and prevent litigation. All of the old adages cannot be ignored. An ounce of prevention is worth a pound of cure.
- “A phone call can save all.”
- If you aren’t sure, just ask!
- Personnel matters / student issues: As stated before, there is no issue that is “too small” or stupid questions.
- Any other matter that raises a “RED FLAG” can be addressed by a call or email to legal counsel
- If something happened, memorialize it and address the issue right away. The last thing you want is to have a snowball effect occur.
- Attempting to handle an issue when you are unsure of what to do can lead to BIGGER PROBLEMS
- Ignorance and “I didn’t know” is not a defense. Better to be safe than sorry.
The Bigger Problems
Do not underestimate unhappy employees. Have meetings, and most importantly, listen to your employees concerns and complaints. Set goals, meet with your employees to make sure these goals and work loads are achievable. Unhappy employees can lead to low productivity, amongst other things:
- Low morale
- Team building exercises are a great way to “rally the troops”
- Takes away from the company’s ability to function
EXPOSURE TO LIABILITY AND LITIGATION
- If you’re not sure, ASK! (Did we say that already?)
- Frivolous Lawsuits – People Will Sue Over Just About Anything, and sometimes find a compassionate ear in the jury
- A former radio DJ was fired after complaining about her allergy to another DJ’s perfume. She alleged disability discrimination based on her allergy and retaliation. Her claim stated that the perfume caused her to lose her voice and take lengthy absences from work. The jury agreed and awarded her $10.6 million in punitive and compensatory damages!
- An Illinois man claimed that stress caused by an abusive supervisor drove him to commit an armed robbery. The jury believed him and awarded him over $5 million for emotional pain and suffering and back pay!
Lawsuits – Frivolous or Not They will Cost you
- Many employers are under the impression that harassment training is expensive-but the alternative is worse
- Appropriate and effective training can be provided at a very reasonable cost
- Litigation is EXPENSIVE
Even SCARIER
- The EEOC resolved 97,443 charges and secured more than $482 million for victims of discrimination in 2016 alone.
- This included $356 million for victims of employment discrimination in private sector and state and local government workplaces through mediation, conciliation, and settlements;
- $65.3 million for charging parties through litigation;
Litigation – THE SCARIEST
Average Litigation will cost you much more then legal fees. Lets add up the soft costs of litigation:
- 3 years from the filing of the complaint to trial (time is money)
- $300,000 in legal fees, if not more
- Juries are unpredictable
- Fee-Shifting – they win $1.00, you pay their legal bills
- Public Record
- Divert other employees away from doing their job
- Emotional drain
Questions? Please contact Stefani or Amanda. Please join us next week as the discussion continues.