Discipline: A Risk Management Tool
Issue # 60
June, 27, 2008
The origin of the word discipline is disciple, which, among other things, means to teach or train. The dictionary also defines discipline as "to train by instruction and exercise", as well as "punishment inflicted by way of correction and training."
Discipline can be used in a positive or negative manner, either way, it is an effective risk management tool. As a matter of fact, many laws that regulate business include discipline as a requirement. As a result, the employer who does not use discipline is exposed to a variety of risks.
Occupational Safety and Health
California OSHA regulations make management responsible for ensuring that all safety and health policies and procedures are clearly communicated and understood by all employees. Managers and supervisors are expected to enforce the rules fairly and uniformly.
The employers system of ensuring that all workers comply with the rules includes disciplining workers who fail to comply with safe and healthful work practices.
When I teach supervisors about accident investigation and the importance of determining the cause, I often hear it was the employees fault because they did something "stupid". Upon further discussion, the employee has been doing "stupid" things for quite some time, and has never been disciplined. This is an example of the root cause being with management.
Discrimination Laws
These laws prohibit discrimination and harassment against numerous classes of individuals. The Equal Employment Opportunity Commission (EEOC) requires employers to have an anti-harassment policy, and to enforce it.
According to the EEOC, if an employer determines that harassment occurred, it should take immediate measures to stop the harassment and ensure that is does not recur. They also state that disciplinary measures should be proportional to the seriousness of the offense.
Absent a policy, including a complaint and investigation procedure, as well as the disciplinary measures, it is very hard for the employer to defend themselves against these claims.
Wage and Hour Laws
The Fair Labor Standards Act (FLSA) is the Federal law which sets minimum wage, overtime, recordkeeping, and child labor standards. The FLSA requires employers to pay for work not requested but "suffered or permitted" to be performed.
For example, an employee may voluntarily continue to work at the end of the shift to finish an assigned task or to correct errors. The reason is immaterial. The hours are work time and compensable. An employee who remains at his/her desk while eating lunch and regularly answers the telephone and refers callers is working. This time must be counted and paid as compensable hours worked because the employee has not been completely relieved from duty.
Problems arise when employers fail to recognize and count certain hours worked as compensable hours. Absent any disciplinary action, these situations could continue until such time a complaint is made to the Department of Labor, who then has the right to review all of the employers records.
It is clear that employers have a responsibility to use discipline as necessary. Hopefully it will be used in a positive manner; however, when necessary, it must be used to make corrections when an individual is not following the rules. While discipline may not be the risk management tool of first choice, it certainly has it's place in the process.
Free for the asking . . . .
For a sample "Disciplinary Policy" send your request to me at ed@kempkey.com and I will email the document to you.
Kempkey Insurance Services goes beyond insurance by designing and implementing risk management programs for growth oriented businesses. We help our clients maximize the value of their insurance dollars and minimize their potential for unwanted surprises. Ed Kempkey can be contacted at (888) 536-7539 extension 2188, or at ed@kempkey.com .