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Reducing Your Liability Exposure: Educating Your Executives and Managers on Employment Law is Essential in Every Business Organization

By: Ariana B. Bianchi

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Large corporations often have extensive human resources departments with procedures in place to protect the company from liability and risk exposure, and to protect the employee against a violation of the law. These companies may also have a legal department to advise executives and managers on compliance issues and a union to represent the interest of employees. Medium or small businesses, and even large privately owned businesses, on the other hand, do not typically have attorneys on staff or unions to assist employees. Therefore, employers who don't educate themselves or staff about employment laws are the ones most at risk for being sued for employment discrimination in one form or another.

Accordingly, it makes sense that even though you may have a good human resources department, your executives, managers, and supervisors must also be trained in employment law to help the company prevent, and successfully defend, claims of discrimination under the numerous employment laws designed to protect employees. Every executive and manager, from a large corporation down to a small business, needs to understand how employment laws work and what laws apply to their company. An educated human resources team will not prevent lawsuits if executives don't know and, therefore can't follow, the laws that apply to them.

In recent months, several major laws have been amended, imposing significant duties upon employers. For example, the Uniformed Services Employment and Reemployment Rights Act (USERRA), the Health Insurance Accountability and Portability Act (HIPAA), and Consolidated Omnibus Budget & Reconciliation Act (COBRA) have all been revised. There have also been a number of important new laws passed, decisions issued by courts, and regulations issued by agencies in charge of enforcing these and other employment laws. In California, for example, a significant new law requires employers to train all supervisors on sexual harassment by 2006. The law is designed to decrease claims against employers through education. Employers who have complied with the law and have an effective program in place to train current supervisors as well as new hires will not only avoid non-compliance penalties but will have stronger defenses to sexual harassment claims if they do arise.

Training Should Be Simple and Easy To Understand. Because upper level employees have little time to train, employment law must be presented in an easy-to-understand and user-friendly format, starting with the basics, using learning activities to reinforce what is required under the law. Employers should seek training for their managers and supervisors that contains engaging content regarding the fundamentals of HR, risk management, and employment law compliance. An enterprise should seek training materials that include measurable objectives, learning activities, focused games and comprehensive assessments. Finding your company's appropriate training can be difficult, but the exorbitant costs that can accrue from negligent regard for employment law far outweigh the value a well-trained employee adds to any company. Closely scrutinize the training materials your company decides to use: A poorly trained manager can be just as harmful as an untrained one.

If you currently do not have a training program in place for your employees or are considering alternatives to your current program, take a look at interactive, high-quality online training from The Human Equation. Online training can help everyone in your organization stay informed, and compliant, with federal and state statutes as well as emerging case law trends, in a convenient, time-saving way.

For more information on employment liabilities and training, please contact Ariana Bianchi at The Human Equation today at 800.521.9667 ext. 272 or email arianab@thehumanequation.com. Train now. Don't pay later.







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The Human Equation's newsletters and publications are intended as an information source for the clients and friends of the firm. Their content should not be construed as legal advice, and readers should not act upon the information in these publications without professional guidance. Please note that newsletters and publications that are archived by The Human Equation or HRTutor.com are not updated after initial publication and may not contain the most current information available.