An MD, a lawyer, an insurance specialist, and an EH&S expert walked into an NCHR-SD luncheon and …    provided a great panel discussion on the why, what, and how of workers compensation fraud. Outlined below are my top takeaways from their expert advice on how to mitigate or avoid WC fraud.

First, the panel emphasized how important it is to understand the potential reasons why people commit WC fraud. Financial gain is the obvious one but just as common a reason is an employee using a claim to solve other challenges such as he/she:

  • has used up all his vacation time and needs time off,
  • is disgruntled and this is her way to get ‘justice’ or ‘payback’
  • feels disempowered and/or over stressed
  • is about to get disciplinary action or suspects he is going to be laid off
  • was put on modified duty, prefers this work and wants to stay there, or,
  • has been encouraged/mislead by an unethical lawyer to take advantage of California’s pro-employee system. ”Yes Virginia, there are unethical lawyers …”

Prevention methods, beyond good EH&S measures, include good employee morale and managers who care and address employee challenges before they show up as an injury with a lawyer attached. Jeff Egenberger, VP of Hub International Insurance Services, emphasized several times that companies with positive, engaged cultures have fewer claims that are questionable or get out of hand. Some other tips the panelists provided on prevention included:

When he was a consultant Jim Whitehurst, CEO Red Hat, discovered something amazing,

“One of the most surprising aspects of that work was that people would open up to me, an outsider, about all the elephants in tIgnoring the Elephant in the Roomhe room — but they were too polite or embarrassed to call out the obvious issues or blame their peers inside their own organizations. My fellow consultants and I would sometimes joke that just about every individual inside a company could immediately tell you what was going wrong and what needed fixing. But whenever everybody convened for a meeting to point out those very issues, you wouldn’t hear a peep about anything that could be perceived as negative. To our amazement, they were more open to hearing feedback from us, the outsiders, than from their own colleagues.”

Though this phenomena is good for consultants, shouldn’t companies be having candid conversations on their own? Wouldn’t the ability to share open and honest feedback throughout the organization improve their chances of addressing their issues, and more quickly?

The gap for most companies is that

Adapted from Labor & Employment Law Blog by Timothy Kim, May 1, 2018

On Monday, April 30, 2018, the California Supreme Court issued a landmark decision that reinterpreted and ultimately rejected the Borello test for determining whether workers should be classified as either employees or independent contractors for the purposes of the California wage orders.

The Court embraced a standard presuming that all workers are employees instead of contractors, and placed the burden on any entity classifying an individual as an independent contractor of establishing that such classification is proper under the newly adopted “ABC test”, outlined below.

The attendees at the March NCHR-SD monthly professional development meeting had the privilege of hearing the transformational stories of the Scripps Health turnaround and learning Chris Van Gorder’s 10 Principles of Front-Line Leadership – an authentic, back-to-the-basics approach that can strengthen relationships, improve trust and build a strong corporate culture that will sustain an organization in bad times, good times and times of extreme change.His 10 principles are ....

As 2018 is well underway many of you will have informed your managers and adapted your procedures to be in compliance.  Congratulations! But for those of you who have not yet got to it, here is a snapshot of the top things you need to do now.  You can get more a more comprehensive review of many other legal changes including sick pay, harassment, and rest breaks in last month’s newsletter. NBC also has an expanded summary of the new laws outlined below (see link below).

Most small business owners are not aware of the tremendous benefits of leveraging the services and expertise of a staffing company.  Many owners have a vague recollection of working with a temp in their corporate life in a larger company but are unaware of how staffing companies can help their smaller enterprises.

Business owners who have discovered the many advantages of using a staffing agency are reaping the benefits of costs savings, better access to top talent, less administrative work, workforce flexibility, and a better-engaged workforce.

At a recent workshop, local Employment Law attorneys, Lou Storrow and Chris Olmsted, presented a summary of new legislation and compliance requirements coming January 1, 2018 that may require you to adjust your HR processes and policies. Even though you may not have time to adapt to legislative changes, employee complaints may result in legal fees, penalties, and payouts. It is important to also be aware that the Labor Commissioner has stepped up enforcement efforts and can now conduct an investigation without an employee complaint. 2016 amendments to PAGA1 also gave the Labor Commissioner more time and funds to investigate. With increased DLSE funding investigative staff are projected to grow from the current 82 to 141 by 2018/19.  

Now that I’ve made you a bit more aware of the risks of non-compliance (sorry for the negative news) let me outline some of the most relevant changes you need to be aware of.

Job postings are a 'cross your fingers' and hope that your high potential top player is thinking of doing something new AND he/she happens to have some spare time to search through job postings. It does sometimes happen, but in today’s very low unemployment job market that same ‘A’ player has already been engaged by one or more recruiters. If one of the openings is a good fit and the recruiter is good at what they do, then their client will get the top person before this person even notices any job ads. So what can you do to get the top players?

Posted by: Leanne Abraham

Understanding the IRS and state regulations, as well as the case law, to determine if a contractor should be classified as an employee may be confusing but do not avoid it or put it off. Make sure you have the right classification before a contractor starts work or it could cost you down the road.  The penalties, fines and legal costs could run into the six figures or more depending on how many workers are involved.

Simple Questions - Personalized Answers - Life Changing Conversations
 Solve some of your biggest relationship challenges before they begin. Build a low conflict culture that takes a constructive approach to the change and conflict that is inevitable in any organization.

Stop Guessing is a world class program for relationship building, team building, on-boarding and self-awareness.

Last month at the NCHRSD  lunch and learn, a group of expert panelists led a discussion on what employers need to be thinking about and planning for regarding California’ new recreational use of marijuana. Of course, California has long legalized marijuana for medical use, but how does the new law of recreational use impact employers? Keep in mind that the cultivation, possession, or sale of marijuana is still illegal under federal law. During the luncheon, we came to some important conclusions which I have outlined for you.

Recruiting Insights delivered to your inbox

Get the latest tips and best practices on how to identify, attract, recruit and retain top talent from our in-house experts plus relevant HR News.
Go to top