Risk & Business Magazine Sterling Insurance Spring 2017 | Page 7

EMPLOYEE MANUAL
BY: PAUL MATTES
STERLING INSURANCE
Robust Employee Manual A “Must”
Protecting Your Company
I
f there’s one way management
often falls short in protecting
itself from employment liability,
it’s in the company’s employee
manual. “When you are brought
up on charges for just about anything
related to employee allegations,” says
Paul Mattes, a Vice President and
Principal of Sterling Insurance, “the first
thing you must provide is a copy of your
employment manual. If you don’t have
a well-constructed document, you are
going to lose in a court of law 90 percent
of the time.” The manual is designed to
state formal procedures in the event of
employee allegations of discrimination,
wrongful termination, harassment, or
other allegedly unfair behavior.
Many companies cobble together an
employee manual based on something
they download from the Internet or
obtain from another company, not
realizing its critical importance. This
is “absolutely the wrong approach,”
according to Mattes, because an
employee manual needs to be tailored
to the specifics of each company and
the regulations of the state in which it
operates.
Regulations in this area can change
quickly and having an out-of-date manual
is asking for trouble. For example, in
2017, the state of California enacted new
legislation governing employee contracts
for those who live and work within the
state. If a company is affected by this new
regulation, it may require immediate
changes to the employee manual and
render older versions obsolete.
“The manual is the playbook you follow
in the event of a claim,” says Mattes.
“Perhaps you first address the alleged
perpetrator in a confidential manner
and then enact disciplin[ary] measures
as specified in the manual.” This helps
provide a valid defense in the event of
a lawsuit and makes it easier for the
affected employee to work, knowing the
company is taking action.
Ther e’s a substantial difference in how
insurance agencies deal with their
customers in the employment liability
space. Many agencies work in a very
transactional mode, operating 90 days
before the renewal, quoting new pricing,
and perhaps visiting the company and
answering questions. Sterling takes a
diagnostic and consultative approach
in which representatives spend time
learning about the company and its
processes as part of Sterling’s proprietary
“Risk Path” analysis. Sterling then goes
through a formal audit to ensure that
all of the necessary topics are covered
and on-staff counsel vets and critiques
the contents. “The end result is pretty
ironclad,” says Mattes.
The best part about Sterling’s audit is
that it doesn’t cost a dime. Sterling’s
compensation is solely driven by the
sale of insurance, so the additional
risk-consulting services are essentially
just a bonus. “When people hire outside
counsel to help develop their policies
and procedures, it can cost between ten
and fifteen thousand dollars. We do it
for free as part of our outsourced risk
management program,” says Mattes. “It’s
a real boon to employers.”
To speak with a certified risk architect to
review your employment manual, contact
Sterling Insurance at 888-525-7575. +
Paul Mattes is the Vice President of
Sterling Insurance Group. Joining the
Agency in 1998 and partnering with
Joe Haney as a Principal, Paul has been
dedicated and instrumental in the growth
of the firm. Using his CIC, LIC, CRM,
CRA, CBWA & CAWC knowledge and over
28 years of experience, Paul partners with
clients in various industries to prepare
solid Risk Management and Employee
Benefits programs tailored to meet
their needs. Contact him at pmattes@
sterlingagency.com or [phone].
7