Employment Law Updates

WHAT A PHOTO IS WORTH . . .

Employers are not legally obligated to keep photographs of their employees on file, yet doing so may help protect against workplace violence.  For example, a local employer recently had to deal with a very serious workplace violence issue involving an employee who had pulled a handgun on another employee.  The employer maintained a copy of the assailant’s driver’s license on file, and was therefore able to immediately provide a photograph of the employee to the police, rather than offering a verbal description.  The photograph was also available to security officers who were subsequently hired to monitor the company property.  If you currently require identification badges or other security measures, consider preserving electronic or hard copies of your employees’ photographs in a readily accessible (but protected) location.  In a time-sensitive situation, it may prevent the need for a thousand words. 

FIDUCIARY LIABILITY INSURANCE -- WHY HAVE IT?

Fiduciary liability insurance protects a trustee and the plan administrator of a qualified retirement plan against breaches of fiduciary duty and other errors relating to the administration of the plan and investment decision-making.  This insurance also typically covers the cost of litigation defense.  Premiums generally are based on the amount of coverage and the asset base of the plan.  For example, a policy covering $500,000 of claims on an asset base of approximately $7,000,000 could cost about $700.  Employers usually pay the premium.  For many employers, this cost is money well spent.  (Note that fiduciary liability insurance is not the same as an "ERISA bond," which is required by law.)  The U.S. Department of Labor maintains an informative website that addresses the fiduciary duties of a trustee.