Employment Law Experts List Top Concerns for Employers in Today's Economy
As business activity continues to shrink across multiple industries, companies must work harder than ever to be competitive in the tightening market space. With layoffs continuing and success on the decline, it has become increasingly difficult for businesses to maintain their reputation, profitability and employee loyalty. So what can employers do to run a productive workforce in these challenging times, and ensure they’re still complying with employment-related laws? Legal experts from the law firm Fisher & Phillips LLP, lend the following advice:
Exercise caution with electronic communication. When it comes to emails, texts and other forms of electronic communication, employers should type every word as if the whole world is reading. As South Carolina Gov. Mark Sanford recently learned the hard way, inappropriate cyber dialogue can lead to colossal scandal. Upon returning from a tryst with his lover in Argentina, the conservative Republican discovered that his love affair had been uncovered by the media. Thanks to a series of revealing e-mails he sent from a personal account, Sanford is now fighting for his job. To avoid disgrace and disaster in an already-difficult time for business, employers should be extremely careful of what they put into writing on company-provided devices. Also, the use of text, e-mails and social networking posts in employment litigation is on the rise. Are your employees using these mediums to create liability for your company?
Safeguard your trade secrets. In the midst of massive layoffs, many panicked employees are prompted to take their former employers’ valuable trade secrets to a competitor in order to land a new job they might not otherwise secure. To protect valuable confidential information, companies should take physical security measures—like locking cabinets and doors, and implementing IT solutions such as password protection and keystroke software—as well as legal steps like implementing confidentiality and non-solicitation and/or compete agreements where appropriate. Every company has something to steal, but employers can take strategic action before theft occurs.
Be careful when slashing salaries. Before implementing pay cuts—an initial step for many institutions facing financial woes—a company must first give fair notice to all employees. Employers should also use caution if reducing hours as an indirect means of reducing pay. In addition, an employer must be careful not to cut exempt employees’ salaries below the level that makes them exempt. Lastly, if a company has committed to reducing salaries, cuts must be made across the board. If financial favor is given to those with seniority, frustrated lower-level employees might be motivated to file a lawsuit or other administrative claim.
Respect the laws governing vacation. As companies everywhere face fiscal hardship, it becomes increasingly difficult for many to offer vacation time. However, before denying a request for time off, a company must make sure that its employee handbook clearly states that vacation is dependent upon the scheduling and needs of the employer. If no such written statement exists, and employees did, in fact, sign a contractual agreement predetermining their vacation hours, a company faces legal risks by retracting time off. While employers can let employees know that no additional vacation will be accrued as of a certain date, employers must honor accrued vacation already in existence. In addition, employers must be aware that they cannot simply fire someone for going on vacation. Doing so can lead to costly litigation in the future, and also diminish the morale of remaining employees.
Consider your company’s dress code. When dealing with dress in the workplace, employers must strike a balance between keeping employees happy and maintaining a consistent corporate image. For example, many companies find that allowing employees to dress more casually makes a difference in terms of employee recruitment and retention. But employers who permit a relaxed dress code must be prepared for the kinds of comments and horseplay more casual attire might generate—especially in an economic season when every minute on the clock is tremendously valuable. Regardless of a company’s appearance standards, it is imperative to have a solid written policy that is consistently enforced, especially in the summer months when casual dress could lead to a sexual harassment lawsuit. Aside from the company policy prohibiting harassment, it’s important to maintain a personal appearance and behavior policy to help deter issues before they lead to harassment claims.
Source: Fisher & Phillips LLP; www.laborlawyers.com.
Reprinted with permission. © CCH
(Submitted July 24, 2009)
<p>What can employers do to run a productive workforce in these challenging times, and ensure they’re still complying with employment-related laws? With employment litigation on the rise, a law firm shares its views for employer concerns.</p>
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