MMC, INC. E-Newsletter Volume IV, Issue No. 10 

October - November, 2008 

Surviving An Economic Downturn
 
For many, there's no question: small and midsize business enterprises around the world are suffering from an economic downturn.  Instead of panicking, we at MMC encourage you to take comfort in knowing you are not alone and the worst may be behind us.  Nonetheless, as you valiantly 'weather the storm,' we begin a three-part series of issues highlighting workplace tips for helping you and your business survives an uncertain economy.  
 
For the past 25 years, MMC has enjoyed its role as a leader for innovative management solutions. Our turn-key solutions for Human Resources, Payroll, Employee Benefits, Risk Management and Compliance issues makes us an invaluable partner for your organization.  Always feel free to reach our team of helpful professionals at (800) 899-MMCI (6624). 

In this issue

• Does Anyone Hear Me? Effective Communications and Honing Your Skills
• Company Holiday Party
• Labor & Employment Law Update - New Amendments To ADA: What Does It Mean To You?
• CA Courts Consider What "Regarded As" Disabled Means

Does Anyone Hear Me?
Effective Communications and Honing Your Skills

When so many things in a workplace are uncertain, dealing with challenges inherent to communicating with coworkers and peers is the last thing you want to go wrong.  Nonetheless, communication experts cite that inner-communication issues in the workplace can fester into stress, illness, loss of motivation, and high turnover.  Aside from improving listening skills and abandoning motivated discussions that aim to prove one person is "right" and the other is "wrong",  the tips below provide quick tips for improved communications. 
 
Tips for Improved Communications

1. Choose carefully - The choice to communicate by email, cell/telephone, or in person should be carefully considered.  If there is a chance your message could be interpreted as ambiguous by the receiver, then you probably shouldn't communicate by email.  Also, if your time is limited or your call can be dropped, a quick email or written communication may be better.  In other words, weigh the best option before you choose your communication medium. Also remember that when you're fatigued  or emotional, a communication sent by any mode might require a follow-up to assure that your tone didn't destroy your message.
2. Practice good listening skills - Good communications begin with good listening skills.  To encourage good listening remember to remind yourself and others that their input will directly lead to other ideas and responses guiding how your organization performs and operates.
3. Ask questions - When in doubt or confused, take the first step to seek clarity.  Foster a relationship where you can comfortably ask questions as to why a decision was made and what policy or procedure certain decisions were based on. If critical to your understanding, ask if a copy of any written policies or procedures is available so you can improve your comprehension and avoid future misunderstandings.
4. Stay calm - Speak as you would like to be spoken to. If you find yourself becoming upset, breathe, excuse yourself, or ask if you can take a break to return to a discussion when its not heated and to effectively address any lingering issues.
5. Interrupt public re-dressings - If you are a manager, avoid disciplining employees in front of their peers unless the issue absolutely must be addressed publicly, in the moment, to avert a greater disaster. 
6. Focus - By focusing on issues, and not the person attached to them, you can keep communications effective.  No matter how angry you are or the other person you are communicating with, keeping workplace discussions as neutral as possible to ensure communications are successful.
7. Avoid Assumptions - While you may know how things work, consider that not everyone else knows the same. Do share details with others that you may take for granted.  Bottom line, assume nothing and be specific when you communicate with others.
8. Keep it Respectful - Always mind your manners, no matter how comfortable you feel with another or how well you believe you are understood.  Thank you's and sorry's can go a long way to further communications when needed.

We at MMC hope this list is helpful.  For more ideas, don't hesitate to call on us for H.R. advice on workplace issues like this or others at (800) 899-MMCI (6624).

Company Holiday Party

The holiday season is upon us once again, it seems to come quicker and quicker each year. In the spirit of the holiday season, having a company holiday party always seems the festive thing to do.

Office parties can be an excellent opportunity to lift employee morale and celebrate organizational successes as a cohesive team. However, for employers, it is important to remember that unfortunately there are some substantial risks involved with sponsoring a company holiday party, especially if alcohol will be served.

Most of the time employer sponsored parties happen without incident, but it is important to be aware of the potential issues that may arise and take all available precautions to limit any potential liabilities, such as the chance for personal injuries, third party injuries or sexual harassment issues.

It is important to also remember that injuries that occur at a company sponsored event may be subject to claims under both workers compensation and general liability insurance.

Recent court rulings in many states have held that persons (including employers) who serve liquor may be held liable for injuries to guests or third parties as a result of accidents caused by intoxication. Jury verdicts in these cases can range into the millions of dollars, particularly in situations where a drunken employee causes fatal injuries to a third party on the way home from a company function.

The only sure way to avoid potential liability for alcohol-related accidents is not to make alcohol available. However, if you decide to allow alcohol at the event, there are a number of ways you can attempt to minimize any negative outcomes such as; 

• Have a clear policy that is effectively communicated to employees that over-consumption of alcohol at company sponsored events is not acceptable and that intoxication and inappropriate behavior at the party will be grounds for disciplinary action
• Schedule the event on a weekday, as people generally drink less during the week.
• Have the party off premises at a hotel or restaurant.
• Have the party during non-working hours.
• Do not conduct company business during the party.
• Attendance to the event should be strictly voluntary
• Develop a party planning committee to organize the event
• Do not provide liquor purchased with company funds
• Hire a professional bartender to monitor the amount of alcohol in the drinks and the consumption rate of party goers
• Do not provide open bars. Instead provide cash bars and implement a drink limit per individual (i.e., a ticket system).
• Do not permit managers or supervisors to buy alcoholic beverages for employees
• Drinking should not be the main focus of the event, plan events, games, or other entertainment to be the focus of the event.
• Collect employees keys when the arrive for the event
• Offer a wide variety of non-alcoholic beverages
• Consider closing the bar early in the evening, perhaps after cocktail hour and prior to food being served.
• Serve foods rich in starch and protein, which stay in the stomach longer and slow the absorption of alcohol.
• Arrange for alternative transportation home for employees that may have had a bit too much, such as limousines, taxis, or employees that have volunteered to be designated drivers.
• If the event venue is a hotel, arrange for a block of rooms that employees can reserve at a discounted rate.

Holiday parties should be fun and safe for all involved. Employers can not eliminate all risks associated with a company sponsored event, but they can take steps to mitigate the potential risk by following a few simple steps as those outlined above.

MMC, Inc. wishes you and yours a happy and safe holiday season.

Labor & Employment Law Update
New Amendments To ADA: What Does It Mean To You?

On September 25, 2008, President George W. Bush signed into law the ADA Amendments Act of 2008. As a result of this new legislation, which will go into effect on January 1, 2009, minor changes have been made to the ADA. Those changes include providing clarity as to how  the term "disability" is defined -- apart from how state courts,  the U.S. Supreme Court, and the EEOC have previously interpreted the definition.  
 
Under new law, the Act will retain the ADA's traditional definition of "disability" as an impairment that "substantially limits" one or more major life activities, a record of such an impairment, or being “regarded as” having such an impairment.  However, new changes attempt to broaden that definition. Most significantly, the Act directs the EEOC to revise regulations to clarify that a disability which "substantially limits" [major life] activities such as reading, bending, thinking, speaking, breathing, and generally communicating, among other activities not previously considered.  A disability under the new Act could also involve limitations regarding major bodily functions such as those impacting the immune system, normal cell growth, digestive, bowel, bladder, neurological, brain, respiratory, circulatory, endocrine, and reproductive functions.  And certain assistive devices such as glasses and arm braces will no longer constitute measures which can diminish ADA protection.  Moreover, individuals who fall under the “regarded as” [disabled] prong of the ADA may no longer be entitled to reasonable accommodations as was previously believed.  In short, the ADA's reach for protecting a greater class of individuals is anticipated.  However, what an employer's obligation to disabled applicants and employees will vary under the revised Act.  The nuances and complexities beg employers to apply ADA provisions conservatively and to work with seasoned human resources and employment law counsel.

To review the revised ADA, click here. Also, keep posted for MMC's 2009 Labor & Employment Law Update which will also cover the impact of new ADA revisions more extensively.

CA Courts Consider What "Regarded As" Disabled Means

In Magano v. Verity, Inc., a manager allegedly harassed a supervisor (Magano) by referring to him in meetings and company events as "Tommy" and "Rainman" which were intended to reference movie characters depicting autistic savants.  The alleged harassment is also said to have resulted in recruiting efforts that led to the hiring of an executive with no serious consideration of Magano's expressed interests of being promoted to the same position.
 
Shortly after Magano suffered this adverse employment action, he was diagnosed with Asperger's Syndrome which is an autism spectrum disorder that is characterized by difficulties in social communication and reciprocal social skills.  Thereafter, Magano filed a complaint against his employer Verity, Inc. alleging employment discrimination in violation of California's Fair Employment and Housing Act.  Verity moved for summary judgment against Magano arguing that they had no knowledge that Magano had Asperger’s Syndrome, did not regard him as disabled, and disputing all claims that Magano ever suffered adverse employment actions and certainly none motivated by a perceived disability. 
 
The trial court agreed with Verity and granted summary judgment against Magano. Under review on appeal, the Verity court concluded that while evidence revealed Magano was regarded by Verity coworkers and management as "quirky" he was also regarded as having moments of brilliance.  Further, as soon as Magano made known that he didn’t like being called "Tommy" and "Rainman" the comments stopped.  Evidence also revealed that Magano worked as a supervisor and was passed over for a senior management position because he had proven on other occasions an inability to work well with the same people he would be charged with leading.  For these reasons and more, the Court of Appeal affirmed the trial court's decision favoring Verity’s summary judgment motion against Magano.
 
To read the decision in full, click here.

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