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For Immediate Release, April 23, 1997

 

EMPLOYER’S SURVIVAL IN THE THICKENING JUNGLE OF REGULATORY MANDATES

EMPLOYERS FACED WITH NEW BROADENED BATTLEGROUNDS BY GOVERNMENT AGENCIES WHO PROPOSE ASSISTANCE PROGRAMS FOR SUPPORT AND EDUCATION ON EMPLOYMENT COMPLIANCE FALLS SHORT OF DELIVERING PROMISES...

Today’s business world is no longer only concerned with counting widgets or trying to stay ahead of the competition, but must now implement survival protocols in the employment practices arena. Employers are in a constant battle with the Department of Labor’s ever increasing implementation of regulations and compliance mandates for employers. However, employers have limited resources for guidance. The insurance industry is touting Employers Practices Liability Insurance (EPLI) brings a financial security blanket for employment-related lawsuits. It is still unclear, however, whether these policies will pay or can pay when Public Policy prevents them from providing coverage for intentional acts of an employer/manager/supervisor.

According to "The Fact Finding Report (Chapter IV, pp. 105-137)", a study requested by the House Commission on Education and Labor in June, 1994, the report presented an account of the rapid growth of federal and state employment legislation, thereby creating individual rights for workers. Enforcement of these employment laws, against employers for non-compliance, requires litigation in federal or state courts or administrative proceedings before a regulatory agency. Employment law cases filed in the federal district courts have increased more than four fold from 1971 to 1991 and wrongful dismissal or discrimination has increased 2,200% in state courts.

The Government Accounting Office (GAO) stated in their June, 1994 "Report on Workplace Regulation" a finding that even larger employers they surveyed were not confident that they knew all of the rules that applied to their business operations. The Commission stated the DOL needs to provide clearer guidance as to what and how one might, best comply. Such guidance is particularly important since so many business establishments are small to medium sized (employing fewer than 250 employees) with limited resources to follow the complexities of federal regulations. The Commission believes a major step that the DOL can take to promote compliance and reduce regulatory disputes is to provide the business and labor communities, as well as the general public, with clear and comprehensive information on regulatory requirements. (The National Federation of Independent Business and Wells Fargo in-depth-study, done in 1995, discovered the DOL’s numbers of new-business startups for 1995 of 770,000 was inaccurate, and indicated the correct number to be 3.5 million.)

In the 1960s and 1970s, The Wage and Hour Division attempted to operate a voluntary self-audit program named "Compliance Utilizing Education" or the "CUE" program. Approximately 100 large firms participated in this program under which the DOL conducted training seminars for personnel officials of the company who then audited their firm’s compliance with wage an hour regulations. The employers who participated did so to reduce their liabilities of violations. Despite its success, the CUE program was terminated because of the perception that the Wage and Hour Division was abandoning its enforcement obligations. In short, how can any Government Agency successfully promote and implement any form of educational program when the Agency itself is unclear of its internal operations and duties, combined with the tremendous overload of cases filed. The average case load for an EEOC investigator has increased from 51.3 in 1990 to 122 in 1994, creating frustration, delays and backlogs. The DOL is responsible for administering 180 statutes. Presently there are approximately 20 major adjudication procedures and a considerable number of minor procedures in operation at the Department. In 1994, OSHA initiated 39,723 investigation, which took an average of 48 days each, and 29, 189 citations were issued.

Increasing employment lawsuits and regulatory cases filed have forced employers to learn the hard way, which is very costly as the average employment lawsuit legal cost prior to trial or settlement is $50,000. This is a costs which small to medium size businesses are not prepared for and in most cases do not have the cash reserves available to fight, even if the case is without merit, thus forcing a settlement. The average settlement for employment cases is $20,000 according to an article in Inc. Magazine’s Online. The settlement is additional to the legal costs, thereby totaling $70,000 for the average case.

Your Employment Risk Solutions, Inc., Dallas, Texas, recognizing the need of the small to medium sized employer, has created a comprehensive, user friendly, Federal Employment & Labor Law compliance software program, Compliance Pro*. The program provides an employer, manager, line supervisor or human resources professional instant access to a comprehensive and easily understood interpretation of Federal Employment Laws and employment-related solutions from A to Z.

In addition to employment law guidance, Compliance Pro^TM provides all necessary employment-related forms; an Employee Policy Manual; Safety policies and procedures current under OSHA mandates, including job stress and workplace violence prevention; employee training materials, including biomechanics of movement and ergonomic graphics; and employee health/wellness materials which are normally overlooked by the typical safety manuals; and a systematic, pro-active guide for the prevention of occupational injuries, and litigation from arising out of their employment practices. More detailed information on Compliance Pro * is available at their web site, http://www.getyers.com, including a free Demo which can be downloaded for review of the operating features of the Program and contents. The Program has an affordable one-time purchase price of $679.00 and $269.00 for their annual subscription for automatic updates to maintain compliance.

For additional information on Your Employment Risk Solutions, Inc., Compliance ProTM , and other products, please feel free to contact Maryah Sautter at the above address, telephone number or by E-mail. We sincerely appreciate your time in the review and consideration of covering the aforementioned issues in your publication. It is our intent to assist in bringing valuable, informative and educational information to the employers in this country. Sadly, the small to medium sized businesses are not aware of all of the employment pitfalls which apply to them, their potential employment practices liabilities, and the financial costs and potential devastation one employment lawsuit could bring. Even the DOL states there is a need for education and guidance in how to comply under all their statutes, as mentioned in this article.