Worked Up At Work

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“Mundane” Issues Can Break Your Business

Workplace tragedies are bad enough without killing your business, too

Human resources is often a major headache for businesses. For employers, it can involve tragedies that are business killers, too.

This year’s workplace shootings are all too typical. Besides the incalculable human toll, they remind us that employers are expected to provide as safe an environment as is reasonably possible. The government, whether a state Human Rights Commission or the federal Department of Labor, has set standards that basically say, “You cannot do too much to protect employees.”

You can do too little and there will be serious financial consequences, but you cannot do too much to protect your employees. OSHA and Worker’s Compensation were set up to protect employees with regard to physical injuries. The Civil Rights Act of 64 has a serious focus on sexual harassment. The Fair Labor Standards Act focuses on protection relating to payroll matters. All of these, and more, exist to hold employers accountable to protect workers.

What the average employer often doesn’t realize is that the government has the philosophy that if employers cannot provide for the safety of their employees, they should not be employers.

The fines are telling. In sexual harassment cases, if there is an allegation that is brought to the attention of the State Human Rights Commission, they will perform an investigation. If that investigation proves the allegation to be correct, they can fine the employer organization up to 25 percent of the company’s NET WORTH! That’s right—up to 25 percent of the net worth of the organization.

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Then there is the restitution or remedy to the victim, followed by the Right to Sue letter they issue to the victim, and then the court and attorney costs. Can you say “bankrupt?” These costs can easily bankrupt the typical small business, and THAT’S THE OBJECTIVE. The government’s perspective is that if you cannot provide a safe environment, an environment free from sexual harassment, you shouldn’t be in business.

The fines and subsequent costs for other violations of the various laws and rules are not quite so fatal, but are designed to make it clear that employers better not mess with their employees. Employers should create a safe environment for their employees—period.

Steve M. Cohen, Ed.D., C.M.C., is the president of Labor Management Advisory Group and HR Solutions: On-Call, and the author of Mess Management: Lessons From a Corporate Hit Man.


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