About Emily Holbrook

Emily Holbrook is a former editor of the Risk Management Monitor and Risk Management magazine. You can read more of her writing at EmilyHolbrook.com.
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Whistleblowing Pays

Sure, sure, whistleblowing pays off by relieving one’s conscious. But did you know it now also pays a much higher monetary reward?

With the Dodd-Frank Wall Street Reform bill now in place, whistleblowers will not only have even more protection from their employer seeking revenge, they will also be rewarded financially at a much greater rate than in the past. According to the recent reform, successful informants will be entitled to collect “10% to 30% of the wrongdoers’ payout” to the securities and exchange commission.

Historically, the SEC could only reward whistleblowers who were involved with insider trading cases. And apparently, they weren’t very generous.

During its 20-year existence, the SEC’s whistle-blower program has paid out only $159,537 to five claimants. No wonder observers of securities fraud have had little incentive to spill the beans. “Basically, [whistleblowing] ruins your life,” says Luigi Zingales, a professor at the University of Chicago Booth School of Business who has studied the issue of whistle-blowers. “What is worth your life getting ruined? It’s pretty expensive.”

Expensive no more?

That’s what many interpret from the new financial reform bill. Besides generous monetary rewards, the new law also greatly expands whistle-blowers’ rights. Now, if you tell on your employer, you are allotted a whopping six years to bring your case to court, as opposed to a mere 90-day statute (the rule under Sarbanes-Oxley).

The National Whistleblowers Center was nice enough to compile everything pertaining to whistleblower protections from the Dodd-Frank Act. Also, our own Jared “Dubs” Wade blogged about the topic — and included a sweet example of his photoshop skills.

whistleblower

Distracted Driving on Company Time . . .

. . . A Risk Manager’s Worst Nightmare.

That was the title of the webinar I participated in yesterday, hosted by Risk and Insurance. Speaking on the topic were:

  • Dexter Hamilton, member and general/commercial litigator at Cozen O’Connor
  • Jami McClellan, senior risk engineering consultant at Zurich
  • Paul Bomberger, editor in chief of Risk and Insurance

Without wasting any time, the panel began discussion about various studies published in the recent past that highlight the dangers of distracted driving. Not only is it hazardous to those behind the wheel, but if the driver is talking on a work-issued phone, or about work-related issues, or driving a company-owned vehicle, the company stands liable.

According to webinar, there is no difference in distraction between hand-held and hands-free devices. In not-so-obvious news, distracted driving is one of the top insurance losses — averaging $100,000 per incident.

The panelists highlighted several cases of companies that were required to pay hefty sums for on-the-road accidents caused by their employees.

One such case involved a brokerage firm whose employee was driving his personal vehicle but talking about company business on his cell phone. The driver hit and severely injured a motorcyclist while talking on his phone. His employer was forced to pay $500,000 to settle the case.

“There’s simply going to be no sympathy once an accident happens,” said Hamilton. “And companies must realize that brand destruction is very critical. A high-profile accident can harm the brand everyone worked so hard to maintain and promote.”

For another example we can turn to the case of Tiburzi v Holmes, which involved Jeffrey Knight, who was a driver for Holmes Transport & Logistics, and Mark Tiburzi, who was driving his personal vehicle at the time. Knight caused an accident that injured 15 and killed three in St. Louis, Missouri. One of those injured was Tiburzi, who suffered severe traumatic brain injury. The cause of the accident? Along with excessive speed and driving over the alloted on-duty hours, distraction was blamed — Knight had looked away from the road to check his cell phone. The jury awarded Tiburzi $18 million — to be paid by Knight’s employer.

For more on this topic, check out “Unsafe at Any Speed” in Risk Management magazine.

distracted driving

The Quagmire of Medical Marijuana in the Workplace

medical marijuana

At the time of this writing, there are 14 states that have legalized the use of marijuana for medicinal purposes. This, of course, poses quite a few problems regarding the employment of individuals who are prescribed pot. Probably the most pressing is the issue of workers compensation for employees who use medical marijuana and are injured on the job.

Since the Obama administration announced last year that it would end raids on distributors of medical marijuana if such dispensaries were following their state’s laws on the matter, the number of dispensaries exploded in those 14 states (California alone has more than 2,000 of these pot depots). Below is a list of states that have enacted laws that legalize medical marijuana use (courtesy of ProCon.org)

I was curious as to some of the issues regarding employment and medical marijuana so I contacted Brett Halloran, attorney with New Jersey-based Fox Rothschild LLP.

Emily Holbrook: How far does an employer have to go to accommodate medical marijuana users? Are they required to tolerate it in the states that allow such use?

Brett Halloran: Under New Jersey’s law, an employer does not have to accommodate the use of medical marijuana at all, although it may do so if it wishes. I am not aware of any state medical marijuana law that would require an employer to accommodate the use of medical marijuana in the workplace.

Holbrook: Do employers follow state or federal law when it comes to dealing with an employee who is prescribed medical marijuana?

Halloran: Employers need to be cognizant of both federal and state law. While state law may permit the use of medical marijuana, federal law still treats the use of marijuana as a crime, regardless how or why the individual obtained the drug. Therefore, at least under federal, use of medical marijuana is still a crime in all 50 states. In part because of that reason, courts have generally held that employers in states that permit the use of medical marijuana are not required to accommodate its use in the workplace.

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Holbrook: How do some employers’ “zero-tolerance” programs need to adjust for the legalization of medical marijuana in some states?

Halloran: For the time being, employers may continue to have “zero tolerance” for workplace drug use, including the use of marijuana, in states that permit medical marijuana. That said, however, employers should review any such policies, including drug-testing policies, to make clear that any prohibition on the use of illegal drugs extends to marijuana prescribed and taken under state medical marijuana laws. By taking an explicit position on the use of medical marijuana by employees, employers can help insulate themselves from a claim, in the context of a later disability discrimination suit, that the employer’s stated reason for a resulting adverse job action was mere pretext.

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That brings us to a recent case in Michigan involving a Walmart employee who was fired for testing positive for marijuana during a employer-issued drug test. The 30-year-old employee, who was prescribed marijuana to treat symptoms of an inoperable brain tumor and sinus cancer, was issued the drug test after an on-the-job injury, which is Walmart’s policy. Is this fair? The American Civil Liberties Union doesn’t think so — they immediately filed a lawsuit.

“No patient should be forced to choose between adequate pain relief and gainful employment,” Scott Michelman, a staff attorney with the ACLU Drug Law Reform Project told CNN. “And no employer should be allowed to intrude upon private medical choices made by employees in consultation with their doctors.”

As you have probably guessed, the Walmart employee of five years has also filed a lawsuit. In Walmart’s defense, however, they claimed that “like other companies, we have to consider the overall safety of our customers and our associates, including Mr. Casias, when making a difficult decision like this.”

The issue of medical marijuana in the workplace will only become more important and widespread as more states are set to legalize its medicinal use.

The Pirate Bay Proves Not So Private

Remember The Pirate Bay? We’ve done a couple blog posts on the topic in the past — about the online piracy site’s legal battles over copyright law and about the fact that Sweden’s Pirate Party actually won entry into the European Parliament.

Well The Pirate Bay has made headlines once more — this time spotlight is on the site’s security flaws. It was reported that an Argentinian hacker named Ch Russo hacked The Pirate Bay site, exposing the information of four million users. Russo claims he performed the hack not with malice in mind, but instead with a desire to raise awareness of the site’s SQL vulnerabilities. The hacker touts the following on his blog:

As any other website, as any other system or mechanism, www.thepiratebay.org has robust parts and soft spots. We believe that the people behind this community always acted with the local laws on their side, and so have we.

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The community caused problems to huge companies and corporations which turned into threats between this companies and them. What we have done, we did not do it with anger, or for commercial value. As always, we saw the change, the moment and decided to take it.

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The protocol or procedure done to achieve this wasn’t anything out of the ordinary.

This is ironic seeing as one of the goals of Sweden’s’ Pirate Party was “to ensure that citizens’ rights to privacy are respected.”

The founders of The Pirate Bay were sentenced in April to one year in jail and a fine of 30 million kronor ($3.6 million USD) after being found guilty in a Swedish court of breaking copyright law. The four men were sued by numerous music companies, including Vivendi’s Universal Music Group and EMI. Russo himself highlighted the idea that these music companies would most likely be very interested in the names, email and internet address of the site’s users. He followed up by stating that that is not his team’s intention — instead, they aim to bring awareness to a lack of information protection on The Pirate Bay and several other sites.

Though Russo claims he and his team are hacking to teach a lesson, the sites’ owners and users are not too happy with the chosen method.

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It seems to me they would rather learn the hard way.