HR Snapshot

HR

Snapshot

WE’VE BEEN BOTH SUPER BUSY AND UNDERSTAFFED RECENTLY. IS THERE ANYTHING WE CAN DO DURING THIS TIME TO HELP OUR EMPLOYEES AVOID EXTRA STRESS OR BURNOUT BEFORE WE CAN HIRE MORE EMPLOYEES?

Yes. Here are a few things you can do to make this time run as smoothly and stress-free as possible: Remove nonessential work duties: For the positions that seem most stretched, make a list of tasks that could be put on hold (or perhaps reassigned). You can invite input from employees, too, but I’d recommend acknowledging that they’re overwhelmed and saying that you’ll do your best to alleviate some of the pressure. Then hold off on nonessential tasks until business slows down or you’ve increased your headcount. Allow for flexible scheduling: If employees need to work longer hours on some days during the week, consider allowing them to work fewer hours on other days of the week. Note that some states have daily overtime, spreadof-hours, or split-shift laws. Budget for overtime: Employees may need to work extra hours to keep up with the current demands of their job, so allow them to work overtime if you (and they) can swing it. If you’re pretty sure overtime will be necessary, inform employees of that ahead of time, so they can plan accordingly. Ensure all equipment is fast and reliable: It’s important to identify, troubleshoot, and correct any slow or nonworking equipment issues (such as laptops, internet hardware, cash registers, or vehicles). If not resolved, these issues can slow down work and add to everyone’s stress. Look for ways to automate: Consider whether any of your employees’ manual and time-consuming tasks could be eliminated or simplified with the use of new or different technology. Increase safety protocols: Employee absences related to COVID have created a significant strain for many employers during the pandemic. Shoring up your safety protocols may reduce the risk of COVID-related absences because of sickness or exposure. Depending on your circumstances, examples include improving ventilation, encouraging or requiring vaccination, requiring employees to wear masks, and allowing employees to work remotely when possible.

Answer from Megan, JD, SPHR

DO MANAGERS NEED TO BE CLASSIFIED AS EXEMPT UNDER THE FAIR LABOR STANDARDS ACT?

No, it’s fine to classify managers as nonexempt. You are under no obligation to classify any employees as exempt, even if they meet the criteria under the Fair Labor Standards Act. You could have an entire workforce of nonexempt employees, right up to the CEO. The important thing is to follow all wage and hour laws applicable to nonexempt employees, including paying them for overtime. Having said that, there are advantages to classifying employees as exempt if they meet all the criteria. It’s administratively easier for you as the employer—no need to track hours for calculating overtime—and many employees prefer to be paid a salary that doesn’t change from week to week. You can learn more about the criteria for classifying employees as exempt, such as the duties tests and salary thresholds, on the platform.

Answer from Kyle, PHR

NOW THAT WE’VE BECOME A “REMOTE FIRST” COMPANY WITH MOST OF OUR EMPLOYEES WORKING FROM HOME, WE’VE STARTED HIRING REMOTE EMPLOYEES IN OTHER PARTS OF THE COUNTRY. WE’RE COVERED BY FMLA BECAUSE WE HAVE MORE THAN 50 EMPLOYEES—EVEN AT OUR HEADQUARTERS ALONE. WILL OUR REMOTE EMPLOYEES BE ELIGIBLE FOR FMLA LEAVE ONCE THEY’VE WORKED THE REQUIRED AMOUNT OF TIME?D?

Yes, these new remote employees will likely be entitled to take leave under the federal Family and Medical Leave Act (FMLA), but not just yet. To be eligible for leave under the FMLA, an employee must have worked for your company for at least 12 months, have worked at least 1,250 hours during the 12-month period immediately before their leave, and work at a worksite with 50 or more employees within a 75-mile radius. Unlike other situations, for purposes of FMLA, an employee’s home is not a worksite. Rather, their worksite is the office they report to or receive assignments from. So, if your remote employees report to or get their assignments from your headquarters, then they are considered to work at a worksite that has 50 or more employees. If you have multiple physical offices, you’ll need to evaluate which location would be considered each employee’s worksite, and then how many employees fall under that worksite. Bottom line: an employee whose worksite has 50 or more employees will be eligible for FMLA leave once they’ve worked 1,250 hours and hit their one-year anniversary.

Answer from Marisa, SPHR

WHAT ARE THE BASIC STEPS OF A HARASSMENT INVESTIGATION?

When an employer receives a harassment claim, they have a legal obligation to examine the claim by conducting a thorough investigation. This includes the following steps: 1. Select an interviewer. Typically, this person would be an impartial manager, company officer, or HR representative. They should approach the investigation process without a presumption of guilt or innocence and with the commitment to treat the situation as fairly as possible. Typically, the investigation can and should be conducted and closed within three days. 2. Speak with the employee who made the complaint (if you know who they are), the accused employee, and any witnesses they name. The questions asked during the interview should not lead an interviewee toward a particular response and should not be accusatory in nature. They should be unbiased, open-ended, and prepared in advance. It’s also important not to promise a particular outcome to employees participating in the investigation. 3. Once the investigation interviews are complete, document your conclusions and actions taken. If the company determines that the accused employee did in fact violate its harassment or other workplace policy, appropriate disciplinary measures may be administered. What qualifies as appropriate would depend on the severity of behavior; it may include termination of employment. A summary of the findings should be placed in the accused employee’s file. 4. Inform both the accused employee and the accuser about the conclusions of the investigation and any disciplinary measures taken. The complaining employee doesn’t need to know the specific disciplinary action, just that appropriate corrective action has been taken. Remind both employees that you will not tolerate retaliation. In some situations, it is advisable to separate employees to limit the potential for future incidents, but care should be taken so this step doesn’t have a negative impact on the employee who raised the complaint.

In addition to the above steps, it’s not a bad idea to consult with legal counsel when you receive allegations of harassment or discrimination.

Answer from Rachel, SHRM-SCP

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6 Common Causes of Agents’ E&O Claims

by Tabitha L. DeGirolano, RPLU E&O Risk Management Specialist Executive Commercial Lines Underwriter Utica National Insurance Group

Why do insurance agents receive errors and omissions (E&O) claims? Often it is for failing to execute basic transactions that take place many times each day in your agency. The following are some of the most common reasons that agents experience E&O claims:

FAILURE TO PLACE/RENEW COVERAGE

For a variety of reasons, an account can “fall through the cracks,” leading to coverage not being bound. Often, this is only discovered once a client submits a claim and realizes there is not coverage in place. Alternatively, coverage may be bound, but not at the terms expected.

CERTIFICATES OF INSURANCE

Many claims begin with a mistake made on a certificate of insurance. This can be the result of listing incorrect limits, including additional insureds that are not covered under the policy, or confirming coverage when the policy has been cancelled.

FAILURE TO OBTAIN/MAINTAIN PROPER COVERAGE

For P&C agents, this is the most common source of E&O claims. When a client doesn’t receive the coverage they requested or expected, they look to the agent for relief. A lack of a thorough risk analysis is often the root cause of these problems. For renewals, failure to recognize and communicate coverage changes can result in a coverage gap for your client.

FAILURE TO GIVE ACCURATE INFORMATION/ADVICE

When an agent is not effectively communicating the product they are selling, a client may believe that they were not provided with adequate information to make an informed decision on coverage. This can be of particular concern when an agent works with a wholesaler on a product they lack expertise in. Limit recommendations can be a pitfall for agents when a client finds out they do not have sufficient coverage for a claim.

FAILURE TO NOTIFY OF CANCELLATION/REPLACE COVERAGE

When agents set the precedent of notifying clients of pending cancellations, failure to do so can result in a claim when a client has a loss after the cancellation. Failing to offer to assist the client in replacing the cancelled coverage can be another area of exposure.

REPORTING OF CLIENT CLAIMS

Claims that are reported to the agent, but not forwarded to the carrier in a timely manner can result in a denial of coverage. Additionally, an agent may not report the claim under all policies that could respond. This is often an issue when excess or umbrella coverage is in place. An agent may advise a client that “they will be covered” or “there is not coverage” rather than instructing the client to submit the claim to the carrier for coverage determination.

Many claims can be successfully defended with good, uniform procedures and thorough documentation. Instituting appropriate loss control measures can help agents avoid claims while better servicing their clients.

In upcoming articles, we will explore each of these common causes of E&O claims in more depth and provide guidance on loss

control measures. For now, check your office procedures to make sure your agency is not making any of the mistakes noted above.