What you don’t know could cost you.
by Laura Jamison
How many of you took Employment Law Compliance 101 in dental school? My bet is that very few of you have. They teach it in law school, but not in dental school. To understand the important of ELC, think of it in the same terms that you think of HIPAA and OSHA requirements. ELC and human resources are an integral part of running a business. Rules and regulations govern what can be expected by employees. Policies defined in writing are easiest to understand. Not following the rules can be costly.
Consider these numbers:
- All employers, regardless of size, must comply with 95% of all labor laws.
- $ 344,000,000 was collected by the federal government in penalties and fines for violating employment law in 2007*
- Many dentists will choose to settle out of court in a disgruntled employee dispute. The average settlement payment is $ 25,000.
- Employment Practice Liability Insurance is beneficial, but can cost $ 3,000 to $5,000 per year, with a deductible of $5,000 to $10,000 per incident.
Insurance may not be the answer
Employment Practice Liability Insurance has been getting some notice. When the dentist’s general liability coverage is reviewed, it is often added as a rider. But in order to be covered for EPLI benefits, the practice must first be in compliance with all state and federal regulations. So if you have to be compliant to begin with, why is EPLI necessary?
For less than the Employment Practice Liability Insurance premium, any practice can easily become compliant with both state and federal regulations. As with OSHA, regulations for ELC must be updated each year. To see if you are compliant, see if you can answer several of these questions:
- Do you know what constitutes an implied contract in an “at will” state?
- Do you know what are considered “protected classes”?
- Do you know whether or not the state or federal rules apply in your practice regarding overtime pay, continuing-education hours, meals, and breaks?
- Does your pregnant employee policy include a “Health Hazards During Pregnancy Release Letter?”
Dentists have been lucky so far. Orthodontists are the most likely to be in compliance due to the business model so many orthodontists abide by. Dentists in solo practice tend to fend for themselves in creating systems. Orthodontists are most likely to replicate a model that has been successful. Both have been lucky so far when it comes to ELC. Why? Because dentists are nice and the employees know as little as the dentist.
Protected classesLet’s address some of the before-mentioned categories. In an “at will” state, it is implied that both the employer and the employee can discontinue the working relationship for no reason. There is now a new kid on the block, and it is a game-changer. Its name is “protected classes.” Title VII and the Civil Rights Act of 1964 includes protection for pregnant women, against discrimination of someone because of age, sex, race, color, national origin, or religion; Americans with disabilities, and victims of retaliatory dismissal and sexual harassment. Implied contracts undermine “at will” status. If a dentist says that there is a 90- day probation period in his or her employee policy, the inference is that there is a “permanent period” in an employment contract. Be careful. Adjustments to what you do are easy to make.Discrimination has been on the radar for many years. The Americans With Disabilities Act was enforced in the early 1990s. Anita Hill brought sexual harassment to the forefront of defining workplace behavior. In my 22 years of experience, most dentists deal with disgruntled issues over pregnancy leave, age and race discrimination, and payment for overtime.
Put it in writing!I recommend having your policies in writing. Putting policies into a written Human Resources manual protects you and clearly informs employees. I am a certified consultant in the practice of Employment Law Compliance and I utilize the products of Bent Ericksen and Associates (www.bentericksen.com). Bent Ericksen and Associates have been at the forefront of defining policies and making the process of putting these regulations in writing (and on your computer) for over 30 years. The process involves a two-hour phone consultation to make internal determinations on items such as full-time and part-time designation, time off, office policies, and job descriptions. These items are thoroughly documented and printed for the benefit of the team. In addition, the process includes the printing of the state or federal regulation that dictates what is necessary for your office regarding overtime pay, continuing-education compensation, and meals and breaks. Once these decisions have been made with the help of your consultant, the manual is printed and presented in a staff meeting.Finally, your team is going to be pleasantly surprised that you cared enough about them to think through these important issues, doctor. They know that having the expectation of them in writing allows them to perform to their very best standard. Today’s economy gives frightening messages every day regarding people losing their jobs. Your team is going to be stronger because you have defined the job requirements and their benefits clearly. It will reduce your stress because when an employee asks for clarification of a benefit such as paid time off, you simply answer with, “Go check the manual.”For an audit of your Employment Compliance and Human Resources manual, please email me at www.jamisonconsulting.com. It is scary to think that an employee who has less assets and earns less money than you do would take advantage of becoming more knowledgeable of the rules and regulations than you are. Don’t let that happen.
• Bent Ericksen and Associates 2007Laura Jamison is one of dentistry’s most successful and highly respected consultants. Laura is focused on dynamic team building and solid business management principles that maximize growth potential. Working with Dr. Jim Pride from 1986 through 1992 led her desire to design unique action plans for her clients. She founded Jamison Consulting in 1992, and has guided over 1,500 practitioners across the country in achieving goals that were previously unimagined. To contact her, visit her Web site at www.jamisonconsulting.com or call her at (800) 637-3947.
