Unemployment Benefits: Eligibility Requirements

Unemployment benefits are eligible to certain employees upon separation of employment. These benefits are available through each state’s unemployment benefit trust fund and eligibility and benefits are based on the state’s specific guidelines.

Who Can Apply

In order to receive unemployment benefits, an employee must meet eligibility requirements, which largely depends how he or she departed from his job.

Layoff: Employees who lose jobs because of layoff or work reduction are typically eligible to collect unemployment benefits.

Involuntary Termination: Depending on why an employee was terminated from a job determines eligibility to collect benefits. If an employee was terminated because of misconduct, then he will generally not be eligible for benefits. Disqualifying misconduct includes:

  • Revealing company trade secrets
  • Company defamation
  • Sexual harassment
  • Dishonesty
  • Intoxication on the job
  • Extreme insubordination
  • Chronic tardiness
  • Excessive unexcused absences

However, if an employee was terminated for a more minor infraction, he will be more likely to claim unemployment benefits. Actions that are not serious enough to disqualify collecting unemployment include:

  • Poor work habits
  • Poor relations with coworkers
  • Inability to make sound judgments
  • Lack of work skills

Voluntary Termination: Employees who leave their jobs for their own reasons will only be able to apply for benefits if the reason is considered “good cause.” Job dissatisfaction is not considered a good cause for quitting, but some good cause reasons include:

  • Workplace causes harm or injury to health
  • Intolerable working conditions (i.e. sexual harassment)
  • Employee has been given option to quit or be fired

Every state has more specific laws on who can collect unemployment. Check with your state’s unemployment benefit program to learn what else determines eligibility.

Your Rights as an Employer

Each person who wishes to collect unemployment benefits has to submit an application, which will then be reviewed by your state’s unemployment office. This office makes the determination who receives unemployment, and will then inform your company if a former employee is eligible to collect unemployment. As an employer, you have the right to contest a claim if you feel a former employee is ineligible to collect benefits. Many companies will allow former employees to collect unemployment benefits even if they were fired due to misconduct; they do this to avoid litigation if the former employee were compelled to sue. However, as an employer, if you choose to contest an unemployment claim, you need to have good cause to do so.

If an employee was terminated for misconduct, to avoid a negative impact to your unemployment insurance rates, you should consider contesting the claim. Also, if you suspect an employee is going to file a wrongful termination suit, contesting the claim might give you details about the employee’s side of the story. If you do determine to contest a claim, contact your state’s unemployment office for specific information about your state’s law. Be sure to proceed with caution, as these types of battles can be timely and costly.

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Planning for Your Future: Identifying High-potential Employees

Successful businesses are forward thinking, always planning ahead for the future of the company. Part of this planning should include identifying high-potential employees to develop into future leaders. So how do you go about identifying high-potential leaders?

What to Look for to Discover Potential

Employees who excel in their current roles will not always excel in leadership positions. Some have already reached their potential, and others don’t have the drive or desire to lead the company. In order to be able to identify high-potential leaders, you should examine these questions when reviewing employees:

What characteristics does the employee possess? Ambitious, motivated, analytical, customer-focused, confident, ethical, intellectual, decisive, innovative, committed, assertive, and aggressive are all characteristics of driven leaders.

How well does the employee understand the business and industry? Leaders have strong business acumen and an innate understanding of how all components of their business and industry work together. High-potential leaders are committed to progressing their careers through gaining as much knowledge about their industry as possible.

Is the employee proactive or reactive? Employees who are eager to make changes and move the company have the drive to lead. Seek employees who are innovative and can identify creative solutions to problems.

How do coworkers view the employee? Often times employees will allow high-potential leaders to lead them even when they aren’t in a leadership position. An employee who is respected by peers and managers because of his or her skills, knowledge, and drive should be considered a high-potential leader. 

How does the employee handle change? Employees who resist change and have difficulty adapting may have trouble managing others and taking risks to get results.

 How does the employee handle obstacles? Leaders view obstacles as challenges to overcome rather than threats.

Processes Used in High-potential Identification

Employees who demonstrate a capacity to grow and succeed within their communities will typically have the drive to become leaders. Many communities have systems in place to discover which employees should be considered high-potential and are the most likely to succeed. Whether it be informal or formal, you should choose a process that reflects your community’s culture.

Assessments: Formal talent assessments will help you discover employees’ strengths and weaknesses to see what aids or hinders in performance.

Feedback: Gather feedback from your employees’ supervisors, coworkers, and clients to help get a broad perspective of how they perform and what skills need to be developed.

 

Interview: Arrange a time to discuss your employees’ long-term goals, how they see themselves growing within your company, how they wish to achieve their goals, and how your company can aid in achieving those goals. Here you will discover if your employees wish to develop into leadership positions.

 

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Identifying Fraudulent Workers’ Compensation Claims

Workers’ compensation fraud occurs when an individual knowingly makes a false representation of material fact to receive workers’ compensation benefits. Every year an estimated $5 billion worth of workers’ compensation fraud is committed making insurance premiums rise. Are you aware of how to identify a fraudulent claim and what you should do about it?

What are the Signs

Insurance companies have compiled lists of triggering signs that an employee might be filing a fraudulent claim. If two or more of these factors or present, you should evaluate the truthfulness of the claim:

1. No witnesses of the incident.

2. Lack of prompt reporting.

3. Alleged injury happens on late Friday afternoon, early Monday morning, or before a holiday.

4. Details are not clear and inconsistent.

5. More than one version exists of how the alleged injury occurred.

6. Employee misses medical appointments or refuses treatment.

7. Business is cutting back hours.

8. Employee is engaged in an activity that would not be possible with the alleged injury.

9. Employee has been notified of poor attendance or performance.

10. Employee has a history of drug or alcohol problems.

11. Employee is difficult to contact or always has you communicate with a spouse or other relative.

12. Employee is experiencing financial hardship at home.

13. Employee has taken an excessive or unexplained amount of time off prior to alleged injury.

14. Employee has a history of workers’ compensation claims.

15. Employee has a hobby that could cause injury similar to the alleged injury.

What to Do When Fraud is Suspected

When you suspect workers’ compensation fraud, keep your suspicions confidential to protect yourself and the claimant. You don’t want other employees to know about your suspicions, and claimants who are aware of your suspicions are more difficult to catch. Once the fraud has been suspected, record all of the details about why you believe the claim is false. Include any and all details as this will help during the investigation of the claim. Make sure to take your own notes about what information you gather from the claimant or others who witnessed the incident. Record information such as:

  • When the alleged injury occurred.
  • How the alleged injury occurred.
  • Witnesses who were present.
  • What medical treatment was sought and received.

Don’t be afraid to ask the claimant probing questions about what happened, but remember to remain neutral. You then need to call your claim representative with your insurance agency so he or she can coach you how to respond to the claim. Insurance companies have different protocols on how to respond to a suspected false claim, so be sure to follow their advice on what to do next to protect yourself and your claimant.

 

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Create Meaningful Professional Relationships: Start a Mentoring Program

Professional mentoring programs are established ways to attract, develop, and retain employees. And one of the advantages of implementing one is that they utilize on-the-job resources: your employees. Strong mentoring relationships can be built to enhance leadership skills, boost employee morale, increase employee engagement and effectiveness, teach and build skills, and prepare employees for advancement. Incorporating a mentoring program into your business can produce positive results. Not one type of program is the right for every company, so be sure to tailor a program to your needs.

Choose an Objective

Before you begin to form your mentoring program, you need to decide what type of outcome you want. Mentoring programs can include counseling, coaching, providing feedback, preparing for advancement, developing skills, role modeling, sponsoring, and retaining employees.

 Define a Structure

Once you have defined an objective to your mentoring program, you can then define a structure. You should follow your company’s culture when deciding how the program should be structured. If you have a formal company, then your mentor program should also be formal. You can consider having an application process for the mentoring program if you want to maintain prime formality. If you have an informal company, then you may decide to take a more relaxed approach. Make sure to set minimal guidelines as a program with no structure will not thrive and the likelihood of survival is low. A good start is to have employees fill out information sheets that help define what they’re looking for in a mentor, what they hope to achieve from the program, and what topics they wish to address. Successful mentoring programs integrate employee feedback as managers learn what employees want and need from the program.

So how do you form your pairs? This can be the most challenging part of establishing a mentoring program as not all personality types work well together. You need to take in consideration interest and experience. Matching less experienced managers with senior managers and entry-level employees with experienced employees is a good place to start, but you also want to think about what each person knows about the company and the industry. Some employees work best with members of the same or opposite sex, and personality differences can either make or break a pairing. Remember to have an “out” for employees who are not making progress in their mentoring relationship. Set aside time to evaluate the relationship to see if it’s working or if it’s not. You might need to make changes.

 Teach Employees How to Mentor

Once you have established what kind of mentor program you want and have structured it, you need to teach your employees what to do. Not everyone will understand how to be a mentor, so having a training session with benefit all involved. Discuss the benefits of mentoring and how meaningful it can be. These types of programs create employee accountability and productivity, but employees who have never experienced mentoring will not understand the benefits of participating.

You can provide an example of how the mentoring relationship should proceed. Pairs should define their relationship: what each expect from one another, how often they will meet, how they will communicate, and what their boundaries are. Next they need to establish what the mentoring will focus around and make goals for how to track progress. And finally, they will have to have a way to measure success. If the goal is to learn new skills, the mentor can provide a test to see if the skills have been learned.

Tips to Remember

A mentor program can be wildly successful or full of failure. Remember to gradually introduce a mentoring program into your company so that employees do not resist. Fully explain the benefits, and give them a reason to participate. One of the best ways to encourage participation is for you to be involved. Manage employee expectations so that they know what they will and what they will not get out of a mentoring relationship. 

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Putting the Pieces Together: Finding the Right Employee for Your Company

Finding and retaining quality employees who fit into your company’s culture can be challenging for many employers, yet it’s also one of the most important ways to foster a healthy work environment for you and your employees. So how do you go about finding the people who will most successfully fit into your company’s culture?

Sell Your Company

When job seekers read the description for your opening, they should walk away with a feel about your company’s culture. Create a job description (let’s link to the job description post here) that embodies the type of culture you breed so that you can attract the kind of candidates you seek. You need to be direct in what requirements the position demands and what qualifications you want candidates to possess. Avoid using generic job descriptions as they fail to capture the essence of the position and your company.

Advertise the Position

Getting word out that you’re hiring is now easier than ever; however, make sure your job description contains relevant keywords so job seekers who are interested in your line of work can find the advertisement. List the advertisement in local newspapers and job-hunting websites. If you’re familiar with job boards specific to your industry, you will definitely want to place your advertisement there as well. Use your networking skills to ask colleagues and friends for referrals. Often times you will find quality candidates from these professional and personal connections because your acquaintances will be picky about the people whom they refer. Some companies also choose to use a job placement agency to help find potential candidates.

Hone Your Interviewing Skills

We’ve all been in those interviews where it’s clear the interviewer isn’t quite sure what questions to ask or how to direct the interview. If you will be interviewing candidates, do your research about what kinds of questions to ask to get the information you want. Yes, you can ask, “What is your biggest weakness?”, but do you feel like you’ll receive a truthful answer? You should ask the standard questions to get a feel for a candidate’s work history, accomplishments, and experience, yet you also want to create a conversation in the interview. Ask probing questions that will help you gain a sense if the candidate possesses traits you are seeking in an employee. 

Test Their Knowledge

Many companies choose to have their candidates perform tests that are specifically related to the job. For instance, a computer programmer may be tested on software knowledge, a proofreader may take a proofreading test, or a geologist may be tested on different rock and soil types. These pop quizzes will let you know if the candidate possesses the skills needed to perform the job.

 Call References

Get feedback from a candidate’s personal references. It’s true checking references may not yield results; however, most people you call for references do not want to lie. You might gain insight about the candidate by what a reference won’t say about him, or you might have a particularly chatting person telling you all about why her past employee was great. Even if the reference doesn’t give you much information to work with, you can at least verify employment dates. 

Making the Cut

When making the final decision about whom to hire, ask yourself these questions:

  • Do I want to work with this person?
  • Will this person fit in with the rest of my team?

Trust your instincts when you are narrowing down the candidates. A person whose resume looks better than another person’s won’t necessarily be the best match for your company. Review resumes, personalities, and interview quality to make your decision.

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What’s in a Job Description?

You’ve all read hundreds maybe thousands of job descriptions, but how often have you written one? The art of writing a job description is tricky as you want to clearly communicate what the job is, what kind of people you’re looking for, and what your company is about in the most concrete and succinct means possible. So what do you include in a job description? 

Dissecting a Description

First of all, you need to have a job title of the position. You want to specify if the position is VP, director, or manager, or if the position doesn’t have a level, you’ll want to address if it’s entry level or experienced. Secondly, you need to address the type of occupation and the area of focus for the position, including what position the new hire will report to. Once you have that determined, you need to include a summary overview of what the position encompasses. This brief paragraph should tell job seekers what the position is and what role it fills for the company. Use descriptive language to sell the position and remember to use a tone that embodies the personality of your company.

Next you need to include a list of duties and responsibilities required by the position. Focus on key tasks for the position and be realistic about the number of responsibilities required. Use as many relevant keywords as you can in these brief descriptions. You want to attract the right candidates for your company, and job seekers will use keywords during their searches. You also need to include requirements of the position. Consider this list to help you shape your description:

  • Education. Describe what types of degrees and certifications are needed for the position. If you’re willing to substitute experience for education, you should list this here.
  • Experience. List the amount of years needed in the industry and whether or not managerial experience is required.
  • Technical skills. Address if you’re looking for candidates with specific technical or software skills.
  • Communication skills. Most jobs require communication skills; however, be specific about what kind of you require: written, verbal, presentational, persuasive, or negotiating.
  • Physical requirements. To be compliant with the Americans with Disabilities Act, you need to state what physical requirements the job possesses. Job seekers with disabilities need to know if they will be able to perform the job.
  • Preference. Anything that is not required to perform the job, but is preferred of a candidate, such as language-speaking abilities, technical or software skills, or more.
  • Hours. State if the job requires working outside normal business hours, overtime, or traveling.

Consider adding an “About Us” section after your list of requirements. Here you can sell your company to job seekers by explaining what you value and highlight benefits you have to offer. If you choose, you may also add terms of employment, which should follow your company policy and be reviewed by a legal advisor.

Writing job descriptions are easiest when you have thoroughly considered what type of candidate you are seeking. Don’t be afraid to be specific and avoid using jargon. A good job description should be updated when new duties are assigned or old duties are eliminated or if an employee leaves and a position needs to be filled.

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Employee Performance Evaluations Create Strong Working Relationships

One of the best ways to initiate and continue employee development is to routinely perform employee evaluations. Providing feedback, praise, and criticism of work lets employees know where they stand and how they can improve job performance. Taking the time to thoroughly and consistently evaluate your employees sends a strong message: you have vested interest in their performance and growth. Employees who feel valued with have higher morale and will be motivated to improve job performance. 

Why Evaluate

Often times employee evaluations may seem like necessary evils that must be done, but in reality, they offer you, your employees, and the company many incentives if done properly.

  • Reward: One of the most obvious reasons is rewarding employees who perform well.
  • Reduced turnover: When both employees and employers are on the same page regarding job expectations, employees perform better. When employees perform well and are rewarded, they are more likely to stay with the company.
  • Boost productivity: Evaluations identify areas where employees need to improve. In many cases, employees are not aware of or do not know how to resolve their shortcomings. Knowing what and how to improve will boost productivity.
  • Documentation: Evaluations record employee performance, which can be useful during litigation.

 Writing the Evaluation

If you plan on evaluating your employees annually, you need keep track of employee performance throughout the year. Document achievements and shortcomings related to performance and productivity remembering not to focus on an employee’s personality. If you have behavioral issues with an employee, remember to document the behavior as it relates to workplace conduct. Having all of this information will shape the evaluation and prevent you from scrambling for information. You will also want to review attendance records, sales reports, budget reports, or any other documentation that might help shape the evaluation.

Your written evaluation for each employee should contain job standards for his/her specific position, which describe what your employee should be doing and how he/she is performing. Evaluations also need to contain goals tailored to each employee. Provide a timeline for when you expect goals to be achieved and for reevaluation of goal achievement. You can then discuss what is working for the employee and what isn’t to see if the goals need to be restructured. By defining specific goals, employees will know what is expected to improve or change, and they will have guidance on how to pursue the goals.

Giving the Evaluation

By routinely giving evaluations, your employees will know to expect them and won’t think they are solely to review poor performance. Provide ample time to give the evaluation; go through each section of the evaluation and let your employees ask questions and discuss their thoughts. Having space on the evaluation form for employees to provide feedback will maintain thorough documentation. Remember to be thoughtful while writing and giving your employee evaluations. While these may seem burdensome, they have the ability to create strong working relationships between you and your employees.

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Costly Payroll Mistakes

One of the most complex tasks any business has to perform is payroll. It’s the center of all relationships between employers and employees, and making mistakes when performing this task can have a huge impact on business: dents in cash flow, payment of heavy fines, an investigation by the Internal Revenue Service (IRS), or even a lawsuit filed by an employee. Because payroll is becoming increasingly intricate and complex, it’s more important than ever to streamline the process. Even minor errors can proliferate causing more extreme problems. According to IRS statistics, approximately 33 percent of employers make payroll mistakes that end up costing them billions of dollars in fines each year.

Providing accurate payroll for employees is your responsibility. Making repeated mistakes will threaten your business’s reputation, and employees will quickly move on to other opportunities if they do not receive their deserved compensation. Follow these tips to avoid making payroll mistakes:

1. Audit your payroll software. Periodically audit your payroll process to ensure that the correct tax deductions are being made.

2. Verify your numbers. Make sure you have your employees matched with their correct social security numbers. The Social Security Administration has a number verification system for employers to check employee names with their numbers.

3. Deduct garnishments, levies, and child support. If employees owe money to other entities by way of a court order, it is your responsibility to deduct that money from their paychecks and remit it to the appropriate parties.

4. Classify employees properly. Depending on the status of your employees, how you report payroll tax information varies. Familiarize yourself with the differences between employee classifications by reading this post. (link to our post about employees vs. independent contractors)

5. Meet deadlines. Knowing how and when tax funds need to be deposited and reported will help you avoid paying costly penalties. Just one fine can exceed the total cost of outsourcing the payroll process.

6. Stay current. Failure to know and implement current state and federal laws can lead to over or under withholding income tax, underpaying state unemployment taxes, or incorrectly calculating fringe benefits.

7. Send 1099 forms. Independent contractors who earn more than $600 need to receive a 1099 tax form by January 31 of the following year. If you neglect to send these forms, contractors are unable to correctly file their tax information.

8. Save records. Depending on where you live, the law requires you to save important payroll records such as time sheets, W-4 forms, and canceled checks for up to seven years.

9. Report awards, bonuses, and fringe benefits. Forgetting to report these types of compensation results in the failure to withhold the sufficient amount from the reportable taxable income.

10. Prepare, file, and send W-2 forms. Employees rely on these forms to properly files taxes. If you do not distribute, or if you distribute incorrect forms, you will be fined by the IRS.

If you’ve made one of these mistakes, know that you are not alone. If you decide to process your own payroll, be sure that you’re current with new guidelines as they become more intricate every year. Many companies now choose to outsource payroll to companies such as Merit Resources to alleviate the pressure of processing payroll. Whatever you decide, be sure to follow these steps to avoid making costly payroll mistakes.

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Preventing Discrimination and Harassment in the Workplace (Part 2 of 2)

Last week’s post discussed what to do if an employee files a discrimination or harassment complaint. The most important thing you can do, however, is to create a prevention plan to avoid these types of complaints. Maintaining a work environment free of discrimination and harassment is your legal obligation as an employer, yet it’s also your best bet for cultivating a productive workplace with high employee morale.

Discrimination and harassment come in many different forms. The Equal Employment Opportunity Commission (EEOC) states that “unwelcome harassment includes unwelcome intimidation, ridicule, insult, comments, or physical conduct based on race, color, religion, sex (whether or not of a sexual nature), national origin, age, disability, sexual orientation, or retaliation.” The EEOC has a zero tolerance for workplace discrimination and harassment, and expects all employers to maintain zero tolerance. Therefore, it is every employer’s duty to prevent discrimination and harassment in order to protect employees.

Adopt a Policy

To reduce the risk of discrimination and harassment, you should adopt a policy that clearly outlines what will happen if either occur. If you have an employee handbook, you should have a section dedicated to your policy that:

  • Defines discrimination and harassment.
  • Explains your zero tolerance of discrimination and harassment.
  • Outlines discipline and firing procedures for employees who participate in such behavior.
  • Establishes procedure for discrimination and harassment complaints.
  • Addresses complaint investigations.
  • States that no retaliatory actions will be taken against employees who file discrimination or harassment complaints.

You might want to work with an attorney or consultant who is experienced in discrimination and harassment while drafting your policy. As an employer, you need to know your legal obligations, and having an expert review or write your policy will protect you from future lawsuits.

Train Your Employees

Several states require employers to train their employees on discrimination and harassment. Even if your state doesn’t legally require this type of training, spending the time to address these topics will benefit your company in the long run. You should hold an annual training session that examines both discrimination and harassment. You can show videos or hold a meeting where you discuss your community’s policy. The session should provide examples of discrimination and harassment and an explanation of how to file a complaint. Employees need to be aware that if discrimination and harassment occur, they will not be tolerated, and if an employee is to file a complaint, it will be fully investigated. If you outline clear expectations for your employees, you will experience less discrimination and harassment. Holding these types of training sessions serves as a tool for insuring that employees know that they will be held accountable for their actions. Simply handing out the policy does not suffice.

You might want to consider holding a separate training session for managers and supervisors, which will discuss all of the above, but expound upon what to do if a complaint is filed. Often times managers and supervisors are unaware of problems and feel like their companies are free of discrimination and harassment. If they know what type of protocol to follow if a complaint is filed, it will lessen the tension and anxiety employees experience if they do file a complaint.

Remember to always take discrimination and harassment seriously. The best way to prevent discrimination and harassment is to create open communication between you and your employees and to advocate zero tolerance.

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Handle with Care: Harassment and Discrimination Complaints (Part 1 of 2)

Part of being an employer is knowing how to handle a harassment or discrimination complaint if an employee files one. Are you aware of what kind of protocol to follow if an employee files such a complaint? Your response should be prompt and appropriate in order to avoid additional problems. Having a strategy for when these complaints occur will reduce anxiety and tension between you and the employees involved.

Listen. The first step you should take when a complaint is filed is to listen to the accuser. Avoid making your own conclusions or assumptions about the situation. The Equal Employment Opportunity Commission (EEOC) is the agency that protects workers from harassment and discrimination in the workplace. They prohibit taking retaliatory measures against employees such as firing, demoting, cutting pay, or reassignments and require employers to take all complaints seriously.

Investigate. Once a complaint has been made, you need to immediately conduct an investigation. Delaying an investigation can create more problems for the accuser and/or the company. You need to ask both the accuser and the accused the following questions:

  • What happened?
  • Where did it occur?
  • What was said?
  • What witnesses were present?

Gather evidence such as emails, notes, schedules, and time sheets in order to corroborate stories. Speak with identified witnesses to see how their versions of the story compare to the accuser’s story versus the accused’s.

Keep it Confidential. Try to keep the complaint and the investigation confidential. Uninvolved parties do not need to know any information surrounding the complaint. Inform the accuser that you will do everything possible to keep the complaint confidential to avoid employees from taking sides or starting rumors.

Document. Tracking everything done with investigating a complaint is important. If a complaint is filed with the EEOC or another government agency, your documentation will provide evidence that you are investigating and that a record has been kept. Transcribe discussions, take notes, print emails, and record disciplinary actions in order to gather adequate documentation.

Hire a Third Party. If you need legal advice on how to handle the complaint, consider hiring an attorney or consultant who specializes in discrimination and harassment. When charges are criminal in nature, or if they have become public, hiring an attorney is probably your best course of action.

Discipline. If the accused has been found guilty of the discrimination or harassment, he or she needs to be disciplined for the wrongdoing. The disciplinary action should match the severity of the behavior. In some cases, a warning, suspension, or counseling will be adequate discipline; however, if the accused conducted threatening behavior or actions, then termination would be warranted.

If you have an employee handbook containing discrimination and harassment policies, follow those policies. Following established rules will help protect yourself and your employees. One of the most important things you can do when handling a complaint of this nature is to remain neutral between all parties involved. Treating the person filing the complaint with compassion and respect will help him or her feel less afraid and vulnerable. Taking sides during an investigation will only lead to more problems. As always, if you have questions, please contact Merit Resources for information about handling harassment and discrimination claims.

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