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Another Reminder About Emergency Planning for an Active Shooter

Washington Post shooting calendarYesterday, Dec. 2, 2015, marked the 336th day of the year and 355th mass shooting, according to the Mass Shooting Tracker, which logs incidents in which four or more people are shot. Indeed, there were two mass shootings yesterday: a smaller incident in Georgia in which a woman was killed and three men injured, and the slaughter of at least 14 people and injury of 17 at an office holiday party at San Bernadino’s Inland Regional Center, which provides social services to residents with developmental disabilities. No motive has been found thus far, but two shooters have been identified as a county employee who had attended the party and his wife.

As I wrote in the November issue of Risk Management magazine, researchers from the Harvard School of Public Health and Northeastern University found that the rate of mass shootings has tripled since 2011. According to a study released last year by the Federal Bureau of Investigation, active shooter incidents, where police arrive to a shooting in progress, are also on the rise. The FBI found that 160 of these incidents had taken place in the United States between 2000 and 2013, 70% of which occurred in either a business or educational environment. An average of 11.4 incidents occurred annually, averaging 6.4 in the first seven years studied, and 16.4 in the last seven years.

With the growing frequency and ever-increasing fatalities, risk managers clearly cannot afford to become so inured to these incidents. Rather, much like they do for other forms of crisis, from fires to tornadoes, they need to be acting now to train employees, develop emergency plans, and ensure business continuity provisions are in place.

“You have smart people leading organizations who know they need to do something, but you see them fall into a pattern of planning to have a plan, and they confuse that with taking action on the issue,” said Jay Hart, director of the Force Training Institute. “Planning to have a plan is not a plan. They need to understand that this is a leadership issue, because it is about protecting the people in the company.”

For tips on preparing for an active shooter incident, check out the Q&A with Hart from the December issue of Risk Management, and “Preparing for an Active Shooter Incident,” from the November issue. When developing a plan to respond to an active shooter crisis, make sure to:RM11.15_ff_shoot_side.630

Avoid Corruption in Holiday Gift-Giving

With Thanksgiving and the holiday season upon us, gift-giving and compliance can be an issue for global companies, especially since more than 20% polled by Deloitte said their companies don’t assess the corruption risk of employee gift-giving.

While 20.4% of respondents don’t assess employee gift-giving corruption risk, more than 43.4% expect anti-corruption enforcement to rise in 2016, moneyaccording to a recent Deloitte poll of more than 1,600 professionals.

“As generous as the holidays make many feel, giving gifts that could be seen as bribes to non-U.S. government officials can result in fines, regulatory action and brand damage for multinational organizations,” said Bill Pollard, Deloitte Advisory partner at Deloitte Financial Advisory Services LLP. “Now is the time to conduct gift-giving compliance training and increase efforts to help ensure anti-corruption compliance through the holiday season. As global enforcement continues to increase, take a note from regulators and make sure your corporate records around travel, gifts and entertainment are transparent and show no ‘corrupt intent’—particularly when out-of-country government officials are recipients.”

The poll results found that anti-corruption policies for giving gifts to non-U.S. government officials run the gamut: 18.2% maintain a no-gift policy and provide no gifts to customers, 16.4% give only small company logo items, 15.7% restrict gift value and 6.1% use separate policies for non-U.S. government officials compared to other customers and third parties.

Holiday gift giving-1

The poll also found that 43.6% of companies plan to make improvements, while 12.7% do not and 43.7% do not know.

To uncover irregularities that point to corrupt intent and bribes disguised as gift-giving, some compliance, legal and internal audit teams use visualization and analytics tools. However, just 8.4% of respondents said their organizations effectively use visualization and data analytics technologies to support anti-corruption efforts. A full third of them (33.1%) didn’t use the tools at all.

Holiday gift giving-2

Leading practices to prevent and detect corruption in gift-giving include:

  • Set ground rules clearly — Describe the nature and type of acceptable gifts, payments, travel and entertainment. Escalate all gifts for government officials to compliance for review. Create an approval process with aggregate dollar limits. Define the disciplinary process for non-compliance.
  • Act globally — Ensure that rules are consistent not only with U.S. laws but local laws and customs. Translate that guidance into all appropriate languages in which your organization operates.
  • Keep gifts corporate — Give gifts that feature company logos, reflect the organization’s products and ensure they are intended for official — not personal — use (such as a business card holder).
  • Make gifting inclusive — Give gifts publicly and transparently, and involve teams as opposed to individuals (such as specialty baked goods for a team to share)
  • Prohibit cash or its equivalents, such as gift cards.

“Anti-corruption visualization and analytics tools can help address varied global anti-corruption laws and gift-giving customs, making multi-national anti-corruption management easier than before,” Pollard noted. “Nothing replaces the fundamental value strong anti-corruption professionals, policies and procedures do.”

Marijuana’s Cost to Employers

With the adoption of more state laws to legalize marijuana, employers will face challenges to protect their employees from injury and to comply with federal requirements to maintain a drug-free workplace.

Employers also face potentially costly litigation as case law surrounding legal marijuana develops, according to the Quest Diagnostics whitepaper “What Will ‘Legal’ Marijuana Cost Employers?”

Marijuana-workplace

Quest reports that medical marijuana legalization brought forth a new phenomenon: the production of marijuana-infused foods and gadgets, which presents a special problem for employers. Today, nearly half of marijuana users in states where it is legal consume marijuana by eating it rather than smoking it. In addition, vape pens, which are like e-cigarettes but contain capsules of concentrated marijuana oils, leave no marijuana smell and are impossible to tell apart from e-cigarettes. These two modes of consumption will make it more difficult, if not impossible, for employers to tell when employees are using marijuana on the job.

As marijuana use increases, so will workplace injuries, accidents, mistakes, and employee illnesses, escalating the costs of companies’ liability, workers’ compensation and health insurance.

Questions companies should ask include:

  • Will employers have to accommodate marijuana use in their workplaces? A closely watched case. Before the Colorado Supreme Court will establish, at least in Colorado, whether employees can use marijuana off the clock even if they may be impaired the next day.
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  • Must employers pay for employees’ medical marijuana if they are injured on the job? By allowing a court of appeals decision to stand, the New Mexico Supreme Court finds that the answer is yes.
  • Will the use of legal cannabinoids like delta 8 THC be allowed in the workplace?
  • What does increased adolescent marijuana use portend for the future workforce? Research shows that compared to nonusers, teens who smoke marijuana on weekends over a two-year period are six times more likely to drop out of high school, three times less likely to enter college, and four times less likely to earn a college degree?
  • How can employers meet federal requirements to maintain a drug-free workplace if states require proof of impairment rather than the presence of marijuana in the body when no level of impairment has been scientifically established and no noninvasive test to denote impairment has been developed?
  • If courts hold that drug testing is no longer a valid indicator of impairment, how can employers whose businesses involve driving or other safety-sensitive positions protect their workers and the public from injuries and deaths cause by stoned drivers?
  • What if courts hold that failing a pre-employment drug test is no longer a valid reason to deny employment to applicants?

There are, however, steps employers can take to protect themselves:

1) Stay up-to-date with the changing legal landscape and adjust workplace policies accordingly.

2) Remember that marijuana is still illegal under federal law.

3) Join other employers to monitor state legislation and take action with legislators to ensure workplace protections are included in any marijuana laws.

4) Educate your workforce about the dangers marijuana poses to children, families and the workplace.

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5) Challenge the notion that marijuana is medicine, or risk paying for it in your health insurance program. No marijuana medicines being sold in states that legalized them have been approved by FDA as pure, safe, or effective.

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Doctors cannot prescribe them and pharmacies cannot sell them.

The Riskiest States for Employee Lawsuits

In 2014, U.S. companies had at least an 11.7% chance of having an employment charge filed against them, according to the new 2015 Hiscox Guide to Employee Lawsuits. The firm’s review of data from the Equal Employment Opportunity Commission and its state counterparts found that the risk also varied notably by state, as local laws creating additional obligations—and risks—for employers led to charge rates up to 66% above average.

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STATES WITH THE HIGHEST EMPLOYEE LAWSUIT RISK

State laws that are driving some of this increased employee charge activity include heightened anti-discrimination/fair employment practices, the use of E-Verify in the private sector, pregnancy accommodation, prohibitions on credit checks, and restrictions on inquiring about or requiring background checks.

Key state laws driving increased employee charge activity

These cases can be especially damaging for small- and mid-sized enterprises, with 19% of employment charges among SMEs resulting and defense and settlement costs averaging $125,000 and taking about 275 days to resolve. The average self-insured retention for these charges was $35,000, Hiscox found, and without employment practices liability insurance, these companies would have been out of pocket an extra $90,000. What’s more, 81% resulted in no insurance payout, giving even nuisance charges the potential to be a serious financial hit. While the majority do not end up in court, when they do, the median judgment is about $200,000, not including defense costs, and 25% of cases result in a judgment of $500,000 or more.

During the hiring process, written procedures that outline and comply with federal and state laws can help minimize risk, as can maintaining a customized employee handbook that all staff acknowledge in writing they have reviewed. In addition to risk transfer, such as an employment liability insurance policy, Hiscox offered several tips to best mitigate the risk of employment charges, including:

Independent contractors

Be careful when designating independent contractors. There are variations among states and areas of law as to the test for an independent contractor. It is possible for a worker to be considered an independent contractor for some purposes and an employee for others.

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Leaves of absence and accommodation for disabilities

A medical condition can trigger federal and state leave and disability laws, which vary, as well as workers compensation laws. Make it a policy to recognize events or discussions that create an obligation to discuss accommodations or a possible leave of absence.

Employee performance

Ensure that all supervisors and managers are aware of the procedure for addressing unacceptable employee performance. Communicate to the employee about what they are doing (or not doing) that is unacceptable, and make sure they understand what constitutes acceptable performance. Document all communications. Conduct factual, honest performance evaluations. Develop and maintain a procedure for corrective action plans.

Termination

To minimize litigation around termination, avoid surprises. Make sure that all guidelines have been followed for addressing unsatisfactory performance, particularly the corrective action plan. Prior to termination, assess the risk for litigation: is the employee a member of a protected class, involved in protected labor activities, or a potential whistleblower? Is the employee under an express or implied-in-face employment contract?

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Gather and review the documentation that supports the termination and interview relevant players.