Pub 7 2018 Issue 5

OneBeacon Financial Services® A Member of OneBeacon Insurance Group® June 2018 | Issue 15 Employment Practices Liability: Keeping Your Bank Protected B Y C RAIG M. C OLLINS – P RESIDENT , F INANCIAL S ERVICES Community banks already have much to contend with in keeping up with building safety and security, phishing schemes, cyber issues and managing compliance standards. Improper and unpredictable employee behavior is an additional challenge that when not managed correctly, can cause issues in the bank that could harm employee productivity and could negatively impact the financials of the bank. Employment P ractices L iability (EPL) claims can include allegations of discrimination, wrongful termination, harassment and a host of other charges. This article will examine tactics you can employ in your bank to help protect your bank from these types of claims. Policies and Procedures Documenting the type of behavior that is unacceptable is a must-do for any organization, regardless of its size. Policies and procedures should be written with the current law in mind, and include how to report a complaint, documenting and investigating the complaint, as well as repercussions for those who violate the expected behavior standards. Copies of the policy should be shared with all employees upon hire, and reviewed at least annually with all employees. They should also be periodically reviewed to ensure they are kept current with any new or changing laws. If you are unsure about how to draft or obtain policies and procedures, consider contacting your state banking association. Many times they will have template policies that are compliant with your state laws, and can be customized for your specific needs. Open Door Policy A well-defined “open door policy” is critical to have in place. Employees need to feel comfortable approaching managers or others at the bank to discuss allegations of unacceptable behavior. Confidential communication must be welcomed without any fear of retaliation . Insurance Even the best policies, procedures and work environments cannot prevent all employment practices issues. Plaintiff attorneys are becoming more aggressive, and defense costs are becoming larger as well. With this in mind, now would be a good time to review your