Today's headlines are rife with reports of lawsuits and impending liability related to various employment actions. HR leaders are well aware of the many areas of potential liability that employees may hold. From wage and hour claims, to FMLA violations, data breaches, and more, HR leaders and the employers they serve face a constant barrage of potential risks.
In fact, writing for the Society for Human Resource Management (SHRM), attorneys Walter J. Andrews and Michael S. Levine have identified ten broad areas of risk that every organization must be alert to. These include:
- Wage and hour claims
- Class actions
- FMLA violations
- Whistleblower actions
- Data breaches
- Social media
- Alternative work arrangements
- Discrimination
- Sexual harassment
- Gender and sexual orientation claims
Growing Risks on Multiple Fronts
In 2017, XpertHR, an information services company specializing in HR compliance, surveyed 1200 HR professionals to determine what they felt were the top risks they face. The results include:
- Election uncertainty
- Workforce planning – a growing risk as the unemployment rate continues to decline
- Leave issues
- Threat of a cyber breach
- Benefits and the Affordable Care Act (ACA)
These days, with the #MeToo movement and seemingly daily reports of workplace harassment, harassment issues also are top of mind for many employers. The EEOC recovered $164.5 million for workers alleging harassment in recent years.
Liability Created by Managers, Supervisors—and Staff
According to a study by global insurer Hiscox, companies in the U.S. face a 10 percent chance of having an employment charge filed against them. The risks vary by state, with companies in Washington, D.C., facing the greatest risk—81 percent higher than the national average.
These are risks that can be minimized, or avoided, by ensuring that managers, supervisors—and all staff—are aware of company expectations and understand how their actions, or inaction, could affect risk. In some cases, that risk extends to the employees themselves. All managers and HR professionals are at risk of being held personally liable in claims of employee liability.
Casting a Wide Net
The common denominator in defending against claims of employment liability is communication. Ensuring that employees understand the risks, and their roles, is a fundamental first step in protecting the company from liability claims. But that's no simple endeavor.
How to minimize those risks by ensuring that everyone in the organization has the information, understanding and training they need to understand their roles—and their risks? An effective employee liability management solution can help. Following are three things to look for:
- Ease of use. Even if you build it, they won't necessarily come, unless you make it easy and intuitive for staff and managers to get answers to the questions they have—now! Your evaluation should start with a thorough understanding of your staff needs and preferences in terms of training.
- Scalability. As your company grows, so do your compliance needs. Consider not only how many users will need to access the system, but also how often and the setting(s) in which access will be needed.
- A Learning Management System (LMS). An easy to use LMS can help you deliver information and education to employees on critical topics, provide a data trail and analytics insights as well. This is critical to provide insights on the effectiveness of your training efforts as well as to provide documentation.
In today's environment, liability is top-of-mind for boards, C-level executives—and busy HR professionals. A focus on compliance doesn't cost, it pays. Find out how you can better manage employee liability through a solution that meets your needs.