How to avoid EEOC Discrimination Suits

 

Updated May 20, 2010 9:30 a.m.

If you’re an out-of-work attorney, the good news is that the Equal Employment Opportunity Commission (EEOC) is on a hiring binge. The EEOC’s Web site also indicates the agency is recruiting for investigators to handle employment discrimination complaints. Of course, mediators, administrative support, managers, and IT personnel are also in demand.

That means employment discrimination complaints are sky-high. For example, in 2010, Boeing’s Mesa, Arizona operation settled two sexual harassment cases for $380,000. A KFC franchisee was forced to pay $1.1 million in a sexual harassment case involving 19 female employees.

Here’s a look at years 2007 through 2009:

In late 2007, I wrote about several respected companies caught in the crosshairs of the EEOC for alleged violation of federal law. It was hard to believe they included Nordstrom, the American Ballet Theatre, Delphi and Bloomberg.

That year’s EEOC-related cases resulted in massive monetary damages: An aggregate $54.8 million.

In 2008, the EEOC charged 95,402 companies with employment violations. The monetary damages totaled $102.2 million.

In 2009, there was a slight drop in EEOC charge statistics – 93,277 cases, but the early indication is that the aggregate amount will prove to be higher when the cases are finally settled.

Among all the categories in 2009, retaliation cases comprised 36 percent of the total – a slight increase from 2008 when retaliation cases were 34.3 percent.

That’s a sad commentary for businesses and public agencies that are large enough for a human resources department. Increasingly, HR departments appear to be supporting and implementing such retaliation. As a Biz Coach, I’ve heard from employees seeking tips from abusive employers in both the private and public sectors.

And that’s just the federal cases. State courts across the nation are filled with discrimination cases, too, because complainants want to avoid the federal caps on monetary damages.

Historically, high-profile harassment cases are a catalyst for additional complaints by other workers. EEOC cases also lead to declining morale, retention problems and poor productivity, which are also costly.

While a federal-agency investigation doesn’t indicate a company is guilty of discrimination, there are several measures that will insure success.

The six basics for micro-companies:

1. Get a mentor and join your local chamber of commerce.
2. Consider outsourcing your payroll.
3. Implement benefits and retirement plans.
4. Create a policy and procedures handbook (job descriptions, hiring, appraisals, compensation, firing and operations).
5. Stay aware of all employment laws.
6. Document everything.

For larger companies, every company’s situation is different, but in general there are 13 basics to avoid EEOC headaches. In my experience, it’s important to learn how and why complaints are filed, and to treat employees with respect and confidentiality.

Law firms have asked my company to help their clients after U.S. District Court actions. In one case, I was asked to implement a wage and compensation plan after a trucking firm inadvertently violated federal laws. A well-meaning technology employer was fined for comments in an inappropriate interview-process and I was asked to conduct sexual harassment training.

Both companies were heavily fined and their lawyers cost even more. One company is no longer in business. So, it’s vital to know the proactive steps to eliminate workplace discrimination and harassment, and the practical benefits to you of equal opportunities for employees.

The key is to start where the proverbial tire meets the road – when employees are hired.

Here are 13 strategies:

Fully understand the required skillsets. Naturally, first decide what each job requires. When a person leaves, decide what additional qualities you want in the job description. While experience and skills are an important consideration for meeting your requirements, there are several other considerations, so take your time.

Keep in mind the three A’s of hiring: Attitude, appearance, and ability – in that order – to fit both your culture and customer service initiatives.

Review your application process. The appearance of discrimination can be unfortunate opportunities for applicants or the EEOC to file complaints regarding your hiring decisions. Review your interview checklist questions and employment applications so that you only inquire about applicants’ talent for the job and availability for attendance according to your required work hours.

When anyone requests an application stay safe by providing it, but don’t do it selectively to avoid the appearance of discrimination. Don’t set deadlines for applicants to apply unless you strictly adhere to them.

Interviewing. When you interview, ask open-ended questions to get the applicant to talk about any issues related to the job. Closed-ended answers in which an applicant answers with a “yes” or “no” won’t be productive. You’ll want to know about the person’s attitudes, expectations and values. A skilled interviewer is careful about commenting on an applicant’s answers.

Background checks. A background check is critical. If you ask questions of a reference or former employer, make certain to take the same precautions as you do with the applicant. If you utilize credit reports, adhere to the provisos in the Fair Credit Reporting Act.

Making an offer. Put your offer in writing to successful applicants, but stipulate that you’re an at-will employer. State the salary in weekly or monthly amounts – so that longtime employment tenure is not implied – and whether there are any contingencies, such pre-employment medical exams. Hopefully, you have highly trained interviewers, but make clear that the letter is your company’s last word in employment and that it supersedes any other representations by interviewers.

Drug testing is often valuable for screening purposes. Applicants with a drug history will sometimes withdraw their applications, but the test is effective for those who don’t. In my experience, drug users are the most dishonest employees – at a much higher rate than even alcoholics.

Insuring success. Make full use of your probationary period. Assuming an employee adequately demonstrates technical skills, remember the No. 1 employer-complaint about new hires is their lack of soft skills – a poor attitude and inability to communicate effectively with coworkers and customers. Appraise them accordingly.

Employee handbook. For legal and productivity reasons, the employee handbook should be utilized to inform employees of your expectations. But clearly state a disclaimer – it’s not an employment contract – employment is conditional. Either party may terminate without cause or notice. Preferably, employees will be given an acknowledgment form regarding their at-will employment status.

The handbook should include policies such as attendance, benefits, vacation, employee-monitoring systems, probationary periods, sick leave, and FMLA (family and medical leave, if you employ 50 or more workers).

Make clear the company will not tolerate harassment and the procedures for reporting it. Remember, employers are liable for behavior of their employees. Should harassment allegations be raised by an employee, be sure to follow through with an immediate investigation and discipline, if proven, and don’t tolerate retaliation. Sexual harassment training, in particular, should be regularly given.

Avoid favoritism. Be consistent make sure of adherence to policies.

Be proactive about workplace complaints. Do not avoid taking action. Make sure you are actively listening.

Safety counts. Be empathetic and show respect. Be safety conscious.

Wage and hour practices. Stay current with all state and federal wage and hour laws and regulations. Some companies have run into trouble because their hourly employees are working longer hours as exempt managers and not paid for overtime. Carefully document your records.

Of course, try to be competitive in pay and benefits.

Continuous policy training. To insure success, make certain managers, human resource interviewers and workers are knowledgeable about your business policies. You’ll be in a better position to prevent harassment, hire correctly and appraise employees accurately. You’ll also be in a stronger position, if you do encounter the threat of litigation. Stay on top of all details, but also be mindful of the protected classes of workers to avoid federal intervention.

Evaluations and terminations. Supervisors and managers must be schooled in worker behavior, performance and if necessary, terminations. Not to oversimplify, but remember every employee is entitled to know three things: What’s expected; what’s in it for them; and how they’re doing.

Make certain that terminated employees can’t conclude they’re being let go for reasons of discrimination. Again, that means documentation and thorough footwork.

These minimal reminders will help you to avoid employment and EEOC traps. However, if you do find yourself in the EEOC crosshairs, be careful how you respond in crafting your position.

From the Coach’s Corner, here are informative federal-government Web sites:

- U.S. Department of Labor, www.dol.gov

- U.S. Equal Employment Opportunity Commission, www.eeoc.gov

9 Quick Fixes to Attract the Best Workers

Biz Coach Terry Corbell explains why it’s hard to get great workers and he gives you 9 quick fixes to attract the best workers.

Some things never change.

In 2006, I wrote a Biz Coach column about an exhaustive study that showed 69,000 employers in Washington state were frustrated over their inability to find the right workers – 51 percent of companies complained workers were unfit. As I recall, employers were concerned about a lack of workers’ skills, poor education and weak soft skills.

(To see the data in my column published by www.king5.com, click or Google this headline:  HR study reveals weaknesses in WA workforce or scroll down.  Note:  I recently checked with the source of the study, Mike Hudson at the Association of Washington Business, www.awb.org,, and he says there has been no change.)

Since then, most U.S. companies have enjoyed a boom time and suffered in a downturn.

But one human resources problem remains – a shortage of skilled labor. That’s right, published reports indicate businesses have problems recruiting good employees.

But employees complain about a lack of jobs. Labor unions would have us believe companies are not paying enough in salary and benefits to attract workers. Not true.

There are countless unfilled jobs in the U.S. because of the economic climate and the structural gap between job requirements and worker abilities. Taxes are too high exacerbating a tepid economic climate and jobs are outsourced abroad. Meanwhile, too many American workers are not flexible enough in developing the right skills, getting the right training, and studying the right courses.

Why do many laid-off workers fail to have the right skillsets?

The high-school graduation rate is too low. Only a quarter of high-school students graduate from college. Technology needs math and science-educated workers. There will always be a need for good accountants. And there will always be a shortage of great salespeople and managers. But too many parents are not paying attention. Their children should be strongly encouraged to study and develop strong work ethics. The same is true for adults.

Most government agencies are bemoaning their revenue problems. But it is not a revenue problem. It is a spending and payroll problem that’s hurting the private sector. Not to mention the government infringement of the private employers’ economic and political freedoms. And the cost of labor is the single biggest expense of any enterprise – public or private.

Not to bore you with countless statistics, but the public sector is unrealistic. It used to be a problem for the public sector to compete with private enterprise in hiring productive people. But no more. Many government salaries and pension plans are much higher than the private sector. And the pension plans are grossly under-funded – in the aggregate – by billions of dollars.

So, how can a business compete?

True, the short-term solution is to offshore your needed services and products. You’ll temporarily solve your HR needs. It’s also an economical approach. And sad to say, employers say work ethics abroad are often stronger than in the U.S.

Meantime, it will be necessary to analyze your company’s strengths and weaknesses, anticipate your needs for talent, focus on training of your staff, recruit effectively, and develop and implement a strategic plan.

Here are the nine quick fixes to attract the best workers:

1. Strengthen your brand. Differentiate from your competitors by enhancing your company image, innovate your product and service utility, become convenient as possible for your customers, and operate more efficiently. You will also learn that such steps will help attract the best employees.
2. Performance management. Invest in training, mentoring and education – tools and resources to help your employees succeed.
3. Succession planning. Retain and attract leaders for your firm, and develop a strategy to help your most talented employees ascend to senior levels.
4. Talent development. Help your managers to evaluate your company’s HR strengths and weaknesses. Eliminate any gaps in your workforce and establish a harmonious environment for company growth.
5. Promote diversity. It’s good business to consider and implement policies to recruit workers who are from other cultures. Add disabled applicants, and part-timers – such as stay-at-home parents and retirement-age workers.
6. Recruitment. Target employees with the three A’s of hiring – attitude, appearance, and ability. (Note the priority of attributes. Both you and your customers will be pleased.)
7. Compensation and benefits. No boss wants to over-pay employees, but if you do your best to provide for employees, they’ll deliver stronger performances and take better care of your company’s assets. Costco is a great example.
8. Productivity. Reduce your skills gap by investing in technology.
9. Adapt. Anticipate and respond to dynamic marketplace changes.

If properly implemented, you’ll see strong results. As they say in Hollywood, break a leg!

From the Coach’s Corner, remember you can increase profits with a strong focus on your employees.

My research shows about 52 percent of a customer’s buying motivation depends on what perceive about you and your employees.

What are the so-called soft skills of your spokespersons, customer service, finance and salespeople? Your customers want value, good service and to be treated well.

For more on this subject, visit “How to Fine-Tune Management of Your Staff,” http://www.bizcoachinfo.com/archives/690

HR study reveals weaknesses in WA workforce

How business and public sector agencies are partnering to solve problems

08:00 AM PST on Tuesday, February 7, 2006

By Terry Corbell

Although Washington is enjoying surging payrolls and declining unemployment, a soon-to-be published study has staggering news about workforce quality, which has resulted in lost profits for more than half of the state’s employers last year.

An estimated 69,000 companies, or 51 percent of statewide employers, had significant trouble finding qualified workers last year. In 2003, 45 percent of companies had difficulty in locating qualified employees.

Moreover, the reasons for the shortages are even more alarming: Employers said a high percentage of workers is ill-prepared for employment.

That was true in every region of the state, according to the new study by the Washington State Workforce Training and Education Coordinating Board. Its mission is to develop a “skilled and educated workforce.” The survey includes the responses of 2,100 employers from a broad cross-section of industries last fall and summer.

In my preliminary look at the data, the study didn’t quantify in dollars and cents how costly the problems are, but the firms that reported recruitment challenges pinpointed six obstacles to their profitability:

• Lower productivity, 57 percent
• Reduced sales, 57 percent
• Reduced product or service quality, 50 percent
• Prevented expansion of facilities, 27 percent
• Prevented development of new products or services, 21 percent
• Caused companies to relocate operations away from Washington, 1 percent

Employers said workers are deficient in two basic categories: 1. Soft skills, the ability to interact with others. 2. Hard skills, being able to perform their necessary job functions.

Companies finding it a challenge to hire qualified employees said the following percentage of workers is deficient in necessary skills:

• English as a second language, 76 percent
• Teamwork, 70 percent
• Communication abilities, 68 percent
• Problem-solving or critical thinking, 65 percent
• Computer literacy, 63 percent
• Acceptance of supervision, 56 percent
• Positive work habits and attitudes, 53 percent
• Occupation-specific skills, 43 percent
• Math, 42 percent
• Writing, 41 percent
• Reading, 24 percent
• Ability to adapt to changes in duties and responsibilities, 17 percent

As bleak as the data is, some of the skills, such as reading, have actually improved since the last study was conducted two years before.

The study also reveals more than six of 10 Washington employers hired new workers last year. That was an encouraging increase over the 55 percent of companies that hired new employees in the previous study.

Meantime, the companies experiencing difficulty in hiring workers said they’ve been forced to take extraordinary measures:

• 62 percent say they had to settle for under-qualified job applicants
• 52 percent intensified their recruiting efforts
• 49 percent were forced to boost their overtime payroll
• 40 percent of the jobs went unfilled
• 28 percent raised their wages for recruits
• 20 percent outsourced their projects

The problems seem to getting worse with entry-level workers: 63 percent of them fail to take responsibility for learning; 57 percent are unable to solve problems or make decisions; and 46 percent fail to observe critically.

There is a silver lining in the unwelcome news. I learned strong action by outstanding people is being taken to implement solutions.

By way of explanation, I was able to preview the data before its release when I interviewed Mike Hudson on “Washington Business Weekly,” the public affairs radio program sponsored by the Association of Washington Business (AWB). Hudson is working with the state agency as the executive director of The Institute for Workforce Development & Economic Sustainability (IWDES), a non-profit affiliate of AWB.

“IWDES operates as an intermediary between the public and private sectors making sure that agency heads and employees know and understand the needs and expectations of the business community,” said Hudson. “In addition, we try to educate the business community to all of the services that are available to them, and how they can access them.”

The five salient IWDES functions include workforce development, competitiveness, technology preparation, customized training and workplace safety.

“In 2006, IWDES will continue to work with the Community and Technical Colleges, the K-12 system and the four-year colleges and universities to improve the development of Washington’s workforce,” Hudson added. “We are working with the Employment Security Department and the Department of Veterans Affairs on the issue of returning veteran’s re-employment and training.” 

IWDES has other missions, too: “We are assisting the Workforce Training and Education Training Board on the roll-out of the Work Readiness Credential and the update of the state’s workforce strategic plan, ‘High Skills, High Wages,’” Hudson said. “And, there is a possibility of working on projects with both the Gates Foundation and Microsoft.”

How did IWDES originate?

“In 2001, AWB President Don Brunell, a 20-year friend, approached me about an idea he had for creating a not-for-profit affiliate of AWB to focus on workforce and economic development issues,” Hudson said. “Workforce and economic development have been passions of mine for quite some time and the thought of creating a completely new organization was very appealing to me, along with the opportunity to work with Don again, AWB’s members, staff and the amazing array of politicians, policy makers and bureaucrats that inhabit the state capital.”

If you want more information, the workforce study is expected be published online: www.wtb.wa.gov. However, now, you can listen to the Hudson interview by visiting www.awb.org and clicking on the link, “Washington Business Weekly Radio Show.”

In my human resources experience, the study’s negative results are not a surprise. Thankfully, business and public sector agencies are working strategically to improve the workforce.

From the Coach’s Corner, here’s a tip on recruitment and insuring success with employees. It starts with what I call the “Four A’s of Hiring.” Hire workers based on attitude, astuteness, appearance and ability. Note that ability is the least important quality. A worker with a great attitude and intelligence can be easily trained.

Otherwise, missed profits are inevitable. Left unchecked, it leads to organizational conflict, of which there are 11 symptoms:

1. Worker negativity
2. Communication problems
3. Failure in strategic planning
4. Inefficient organizational structure
5. Power plays or politics
6. Lack of alertness or dexterity
7. Unattained goals
8. Lack of cooperation
9. Lack of resources
10. Inordinate uncertainties
11. Failure to bridge cultural differences

Troublesome employees who cause conflict tend to have basic seven undesirable traits:

1. Arrogance
2. Breaking of commitments
3. Creating environment of fear
4. Deceptive behavior
5. Self-denial
6. Disrespecting of others
7. Lack of conscience

Ninety percent of such problems are solved with quality human resources training – if you have a focused, resilient trainer. And, yes, it’s hard work.

About 10 percent of employees usually aren’t trainable and they qualify for substance-abuse treatment or a 12-step program. Incidentally, even promising employees can slip into substance abuse a few times after treatment or participating in Alcoholics Anonymous, www.alcoholics-anonymous.org, or Narcotics Anonymous, www.na.org.

Al-Anon, www.al-anon.alateen.org, is designed for those affected by alcoholics and Nar-ANON, www.naranon.com, is for people impacted by drug addicts.

Take care of business and you’ll maximize revenue.

21 Tips on How to Start a Business in a Recession

 

Conventional wisdom probably indicates a recession is not the best time to start a business. But if you have ever dreamed about it, there might be good reasons why the seed to start a business in a recession was planted in your mind.

Good ideas are worth a lot of money, especially in a recession. Many successful companies were launched in economic downturns. They range from General Electric to Hewlett-Packard.

A recession can be a good time if you have a great idea and have entrepreneurial instincts. Entrepreneurial personalities do not let fear run their lives.

Think of fear as an acronym: Frantic effort to avoid responsibility. Entrepreneur-types see a good idea as a responsibility to act. Plus, a recession motivates them to work harder and smarter on developing and executing their ideas.

True, consumer confidence is down, home foreclosures are increasing and the business climate is tepid.

As many companies cut back, new business opportunities appear. But you’ll have to hustle. Successful entrepreneurs do their homework and work as hard as dedicated athletes who train for high performance. Yes, there are numerous pitfalls for startups, and it will probably be the most difficult undertaking of your life.

Here are the 21 tips on how to start a business in a recession:

1. Pick the right niche. You’ll need to enjoy your work and be passionate about it in order to succeed.

2. Take baby steps. Strategize now while working at your present job. Don’t quit or wait for a layoff. If you’re out-of-work, money is problematic but you might not have a choice. Consider all your options.

3. Develop your vision. Write a one-page vision, which explains where you will want to be. Then, consider a business plan for a roadmap. Do your research and become an expert in your industry. Know your competition.

To determine where you are business-wise, conduct a SWOT analysis to assess your strengths, weaknesses, opportunities and threats. Some firms then develop and implement a strategic plan. A business plan is a management tool vis-a-vis a strategic plan, which is a leadership tool.

This also means learning accounting techniques, forecasting your cash flow, and considering buying good bookkeeping software.

4. Seek expertise. Read about successful entrepreneurs. Look for a mentor and a qualified sounding board.

Also, contact a Small Business Development Center. The organization has countless offices throughout the country.

Here’s the link: http://www.sba.gov/aboutsba/sbaprograms/sbdc/index.html

5. Get a head start on marketing and selling. Line up customers before you launch. Always remember: Cash flow is paramount.

You might want to read my column, “The Seven Steps to Higher Sales,” http://www.bizcoachinfo.com/archives/27

6. Market and sell every day. Establish a marketing budget and stay with it. Many companies lose market share by cutting advertising and promotion. Implement strong public relations.

Make yourself known to your local public officials and news media. Suggest to reporters that they consider interviewing you when they want an authority in your niche. Look for ways to multiple sales with your customers.

Consider networking with larger companies – many outsource to micro-businesses.

7. Make customer service a priority. When customers take their businesses elsewhere, my research shows 7o percent of the time it is because they feel taken for granted.

Practice great customer service for referrals and repeat business. Survey your customers. When a customer pays you a compliment, ask a question such as this: “What are the names of two people just like you who might appreciate my company’s services.” Be sure to follow-up with the referrals.

If you plan to free-lance or become a consultant, consider my “60 Ground Rules for Effective Client Service,”  http://www.bizcoachinfo.com/archives/106

8. Harness the power of the Internet. Learn blogging and search engine optimization techniques, and how to develop online press releases. A strong Web presence is paramount.

9. Line up your resources. Seek references from trusted associates for a good accountant and lawyer. Plan your policies and procedures. Learn to manage your books.

10. Arrange your financing. You’re unlikely to get a bank loan without a track record. Besides, it’s more economical to use your own resources and start from scratch. Avoid reliance on credit cards and home equity.

If you are seeking investors, consider another column I wrote: “What No One Tells You about Raising Investment Capital” in an interview with leading consultant Joey Tamer: http://www.bizcoachinfo.com/archives/1177

11. Appearances matter. Look professional – pick a good business name, logo, memorable tagline, and a branding-benefit statement that adequately tell your story. That also means quality business cards and stationery, a Web site, and email address using your domain name.

12. Understand legal requirements. That includes business license and taxes at the local, state and IRS. If you’re planning to hire employees, check with your appropriate state agency.

13. Consider buying a micro business. Avoid buying a company that’s losing money unless you’re certain you’ll succeed. Consider proposing owner-financing in a leveraged buyout. But do your due diligence. Walk away from a prospective seller who shows even a hint of bad practices.

14. Develop backup plans for equipment and operations. You’ll never know when bad weather or misfortune will strike. Fortune favors a prepared mind and business.

15. If you plan to hire employees, learn best practices in human resources. Hire the best workers, who demonstrate the 3 A’s – attitude, appearance and ability. (Note a good attitude is most important.)

Motivate them to be productive and to make your business look good in the marketplace.

16. Location. Just as in buying a home, there are key points to remember about where to locate (scroll down to the last paragraph for a link).

17. Keep sources of inspiration handy. Bone up on slogans and quotations to keep you motivated.

18. Community service. In addition to your regular routine of hard work, recreation and exercise, you’ll find it gratifying to devote time, talent and/or money to a worthy cause to lessen the misery in your community.

19. Network and join your local chamber and industry associations. Develop relationships and become a spokesperson for your industry. Become known as the “go-to” person.

And get involved in public policy when events adversely affect your industry. Government agencies are not known for enhancing or even protecting entrepreneurs’ economic and political liberties.

20. Budget time for continuous improvement. It’s vital to regularly reflect on your business and how to evolve in the marketplace. Review your SWOT analysis annually, and fine-tune your planning.

21. Remember to play and rejuvenate your mind. That means you should exercise, engage in your hobbies and do whatever works for you to stay mentally healthy.

Again, if you start a business, it will be the hardest thing you will ever do.

Yes, it’s a lot of footwork. But if you start with these rules, you’ll enjoy a competitive edge.

From the Coach’s Corner, to help you determine your entrepreneurial capabilities, here’s a link to a Small Business Administration site:

http://www.sba.gov/assessmenttool/index.html

For more insights on starting a business, I was honored when New York Times columnist Brent Bowers featured me.

Here are links to the columns:

•  ”Been There… Done That… Here’s How”   http://www.nytimes.com/2008/02/26/business/smallbusiness/26hunt.html? _r=1
•  “Advice on Taking an Entrepreneurial Leap” (including tips on where to locate a business) http://www.nytimes.com/2008/03/26/business/smallbusiness/26hunt.html