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News Notes: Study Reports Many Employers Were Sued But Few Had Insurance

Even though employee lawsuits are skyrocketing, most employers don’t carry insurance for employment practices liability, according to a report by Aon Risk Services, an insurance brokerage. Of 2,200 employers from various industries surveyed, 61% said they don’t have insurance. Nevertheless, three-quarters of the respondents reported being hit by an employee lawsuit within the past year. 

News Notes: IRS Extends Electronic Tax Deposit Deadline

The IRS has postponed the deadline for businesses to begin making payroll tax deposits electronically until the beginning of next year. The agency backed off the original July 1, 1997, deadline because of pressure from Congress and complaints from smaller employers that they were having trouble complying. Now, if your company pays more than $50,000 […]

News Notes: Electronic Surveillance Common In The Workplace

A new American Management Association survey reveals that 63% of mid- and large-sized U.S. firms monitor their employees. Financial sector employers utilize electronic observation the most, and manufacturing companies use it the least. According to the report, 35% of the employers surveyed record employees’ phone calls, review voice mail, check computer files and e-mail, or […]

News Notes: Phone Company To Fork Over Millions To Settle Overtime Claims

In a development that highlights the expensive consequences of misclassifying employees as exempt from overtime, San Francisco-based Pacific Bell has reportedly promised to pay out huge damages-$27.8 million-to settle a class action lawsuit involving claims for unpaid overtime. The case involved 600 current and former sales support managers who were classified as exempt from overtime. […]

Handling Whistleblowers: Surprising New Caution On Firing Workers Who Complain

In recent years many employers have been sued for illegally firing or disciplining employees who blow the whistle or gripe about workplace health and safety considerations or an employer’s alleged illegal activity. But now an employer is in hot water for merely deciding not to rehire a contract worker whose employment term had expired. Here’s […]

Arbitrating Employment Claims: Court Strikes Down Arbitration Clause; Important Details You Should Never Leave Out

Agreements to arbitrate employment disputes are more popular than ever with employers because they can help avoid expensive and risky litigation. They are also controversial because some believe it’s unfair to require employees to agree in advance to submit employment claims to arbitration, giving up the right to a jury trial and potentially huge damages. […]

Personnel Policies: New Case Flags How Your At-Will Agreements May Be Vulnerable; Review Your Practices

The basic rule in California is that employees can quit or be fired at any time, with or without cause. If you’re like most employers, you’ve reinforced this concept by including “at-will” statements in your employee handbooks and application forms. But you could find yourself on the wrong end of an employee lawsuit if your […]

Terminating Employees: Why Failing To Keep Your Story Straight Can Lead To Expensive Trouble

When you’re faced with the prospect of disciplining or discharging an employee, you may give the worker several different reasons for your decision. However, a new case points out the importance of getting your story straight before you terminate someone. That’s because if you provide conflicting explanations, you may inadvertently give the employee an opening […]

Health And Safety: Landmark Ergonomics Regulations Finally Approved; What You Need To Know

Following years of controversy and false starts, historic workplace ergonomics rules aimed at reducing repetitive motion injuries are in effect as of July 3, 1997. Certain employers whose workers have repetitive motion disorders like carpal tunnel syndrome and tendonitis will have to implement a specific ergonomics program to eliminate or minimize the injury risk.