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What Do The Guidelines Require A Company To Do?
The new guidelines establish very specific criteria, and in the process send very specific messages to business executives interested in avoiding employment-related (and other) lawsuits. Here is our breakdown of the key components of the guidelines, using the Advisory Group’s terminology, and what you must do to comply:
- Directive:
The organizational culture must emphasize “a commitment to compliance with the law” and the organization’s “governing authority” and “organizational leadership” must take responsibility for corporate compliance.
What’s it mean?
Company leadership must undertake actions and devote resources toward the prevention of employment law violations. At a minimum, this requires the design and implementation of compliant policies and procedures, professional management training, and consistent enforcement of standards. Company leadership must set the example, and unjustified exceptions to standards of compliance cannot be tolerated.
- Directive: The organization must devote “adequate resources and authority” to individuals within the organization who are responsible for implementation of an “effective program” of compliance.
What’s it mean?
Figurehead compliance officers will not be tolerated. Authority to effect change, coupled with adequate budgets, must be afforded to those responsible for a compliance program.
- Directive:
Any “effective program” must include “training and the dissemination of training materials and information.”
What’s it mean?
Merely promulgating policy manuals will not suffice. Training and implementation will be the key.
- Directive:
Systems must be monitored and audited, and a procedure must be implemented for “periodic evaluation of the effectiveness of a program.” The organization must “provide for the conduct of ongoing risk assessments as part of the implementation” of the compliance program.
What’s it mean?
A real compliance program is not a “one and done.” Once real change is implemented and training provided, assessments must be undertaken, the results analyzed, and further remedial efforts applied as required.
- Directive:
The organization must implement “a mechanism for anonymous reporting”.
What’s it mean?
Companies must implement real, compliant employee complaint and investigation procedures that protect employees from retaliation.
- Directive:
The organization must “seek guidance about actual or potential violations of the law”.
What’s it mean?
Companies are required to seek the assistance of experts to uncover existing or latent violations – i.e., the “legal audit” CCG provides as part of its basic services.
We have been designing and implementing business compliance solutions for many years. It’s what we do. Please contact us if we can assist your efforts.
Counsel Consulting Group LLC helps companies throughout the United States avoid employment and HR-related claims and liabilities. CCG assesses existing policies, procedures and problem areas; it provides customized liability-avoidance training to managers and executives; and it designs and implements business techniques that reduce employment liability risks on a long term basis. CCG also offers specialized workshops for managers and HR executives, customized consulting in focused employment-related areas, and CD-ROM and web-based training alternatives. For more information, contact us at info@powelltrachtman.com and visit our website at www.counselconsulting.com.
Powell, Trachtman, Logan, Carrle & Lombardo, P.C. is a full service law firm with offices in suburban Philadelphia, PA, Harrisburg, PA and Cherry Hill, NJ. Powell Trachtman represents a variety of commercial enterprises, entrepreneurs and business executives in respect to their litigation, litigation avoidance planning, business formation, business transactions, estate and tax planning, and other needs. We are also approved defense counsel for numerous insurance carriers in matters pertaining to professional malpractice, products liability, employment practices, directors and officers liability, and many other fields. For more information, contact us at info@powelltrachtman.com and visit our website at www.powelltrachtman.com.
