Workplace Internet hazards

Computers in the workplace have become ubiquitous in the last two decades. E-mail and the Internet have revolutionized the way companies do business and increased productivity. But with those gains have come problems. Electronic communication has brought with it increased liability for employers in the form of unwanted content getting into the the workplace and has made it easier for sensitive data to get out.

A recent example of how bad things can get comes from the National Science Foundation. In a recent report to Congress, the foundation reported a significant “abuse of NSF IT resources.” This “abuse” of resources involved “numerous reports of employees viewing pornography on their government computers.” One senior official was reported to have spent as much as 20 percent of his work time viewing sexually explicit images and engaging in sexually explicit chats. This kind of behavior is far from uncommon. Traffic to sexually explicit Web sites peaks during office hours.

Visiting these sites not only decreases productivity but leads to potential harassment lawsuits by offended co-workers. Sexual harassment used to be confined to activities such as unwanted advances, lewd talk and inappropriate cartoons. Now businesses have to worry about explicit material that is only a few clicks away on any employee's desk.

As troublesome as the problem of sexually explicit material is, perhaps more risky for a company's bottom line is the ease with which company secrets can now leak from the building. Reams of data that in previous decades would have been extremely difficult to get out of an office building can be exposed to competitors and the public through mere carelessness. Secret company data, such as client lists, as well as private information about employees and customers, can be exposed through poor security measures. Equally troublesome is the possibility of intentional theft by employees. That same information can easily be e-mailed or put on a small thumb-drive.

These risks can be mitigated, however. Under most circumstances employers can legally monitor their employee's computer usage and Internet filters can be installed. Asking employees to submit to monitoring will take care of most legal concerns in this area, although you should consult a lawyer if you have any questions about the legality of computer monitoring. This, along with a strong anti-sexual harassment policy, will help mitigate liability concerns. Maintaining proper IT security systems and having strict policies regarding trade secret violations can help protect your company from leaks as well.

 

Independent contractor or employee?

During the recession, companies have been looking to trim payroll while keeping productivity high. One of the ways some are doing this is through the increased use of independent contractors. But companies looking to save money by turning to independent contractors should be careful; a recent report by the Associated Press shows that the Internal Revenue Service and 37 states have started a crackdown on companies that misclassify full-time employees as independent contractors.

The reasons for hiring an independent contractor instead of a full-time employee are myriad. A company can save a lot of money because, generally, they do not have to pay for things like workers compensation and unemployment insurance, often do not provide contractors with the same benefits that are provided for full-time employees and can avoid paying some taxes. But misclassifying an employee can get your business in trouble with the IRS and expose your company to employee lawsuits.

The standard question in determining whether a worker is an independent contractor or a full-time employee is how much control the company has over the worker and how much independence the worker has from the company. The IRS lists three factors that often go into this question of control and independence:

1 – Behavioral control: Generally, the more control the company has over how the worker does their job, the more likely that worker should be properly classified as an employee. If the employer controls when, where and how the worker does the job, they are more likely to be an employee. If the employer provides the tools, specifies where to buy supplies and controls the sequence of how a job is to be done, it is more likely that the person is an employee. Also, if the employer gives detailed instructions on how to perform the job, performs detailed evaluation on how the job was completed and provides training on how to do the job, it is more likely that the worker should be classified as an employee.

2 – Financial control: This factor shows whether the worker has the right to control the economic areas of the job. If the worker has put up a significant investment, is not reimbursed for expenses, has the opportunity to make a profit or a loss and is able to provide their services to other clients, it is more likely the person is an independent contractor. Also relevant is the method of payment. If a worker is paid by the amount of time worked, rather than by the job, it is more likely they are an employee.

3 – Type of relationship: This factor considers how the parties have come to their agreement and how they view it. If there is a contract for services, it is more likely that the worker is a contractor. If the person gets benefits and is hired indefinitely, as opposed to for some limited amount of time, they are likely to be an employee.

It is important to remember that there is no set formula to determine whether someone is an employee or an independent contractor. Courts will weigh these factors to make a determination. Some states may have laws that change these common law default rules and so it is important to determine the laws of your state before deciding on the classification of a worker. Consult a legal professional if you have any specific questions.

 

Damage caps in danger

The Illinois Supreme Court has ruled that the cap on pain-and-suffering damages in medical malpractice cases is in violation of provisions of the Illinois state constitution. The decision has many in the medical, business and insurance industries worried that runaway liability risks could make doing business in states like Illinois prohibitively expensive.

The Illinois legislature had put a $500,000 cap on pain-and-suffering damages against doctors and a $1 million cap on damages against hospitals. These caps have proven popular and many states throughout the country have adopted them. Advocates of the law say it lowered the cost of insurance and increased access to medical care in those states. If caps on damages were universally removed, a significant tool of the tort-reform movement will be unavailable.

While the decision is based on the Illinois constitution and will only effect the Illinois state law, many are worried that other state courts will follow the lead of Illinois and strike down similar laws. Currently, the highest courts in Georgia, Kansas, and Missouri are considering the issue of whether similar caps on damage awards should be allowed to stand.

The Illinois court based its decision on the court's reading of the separation of powers clause in the state constitution. The court held that the constitution invested in the courts the ability to lower damage awards and it was unconstitutional for the legislature to place caps on awards. Barring an amendment to the Illinois constitution, it is unlikely that a cap on awards will be put back in place in Illinois.

 

Feds get tough on truckers

The U.S. Department of Transportation explicitly banned texting while driving for commercial truck drivers in another effort to combat the deadly practice on American roads. The prohibition will apply to drivers of commercial vehicles such as large trucks and buses.

Drivers who violate the new rule on texting face civil and criminal penalties of up to $2,750.

“Our regulations will help prevent unsafe activity within the cab,” said Anne Ferro, Administrator for the Federal Motor Carrier Safety Administration. “We want to make it crystal clear to operators and their employers that texting while driving is the type of unsafe activity that these regulations are intended to prohibit.”

The government has already taken steps to ban texting by federal government employees and Transportation Secretary Ray LaHood has indicated that this new rule will not be the last step taken to prevent the use of electronic distractions. Citing the substantial danger posed by drivers using electronic devices, the FMCSA says it is working on additional regulations that will be announced in the coming months.

 

Low levels of quake coverage

As the cleanup in Haiti continues, it is important for businesses in the United States to consider their exposure to earthquake losses – especially those businesses that are in earthquake-prone areas like California.

Despite the fact that earthquakes are bound to happen again in places like Los Angeles or San Francisco, a surprisingly small percentage of businesses have earthquake insurance. A recent report from Risk Management Solutions estimated that as few as 15 percent of businesses losses in the San Francisco Bay Area would be covered in a major earthquake because of low commercial insurance penetration rates. This low penetration rate is somewhat surprising given the magnitude of the problem. Risk Management Solutions estimates that a large earthquake on the San Andreas Fault would cause $119 billion in economic loss, $64 billion of which would be commercial losses. Perhaps it is because major earthquakes are so few and far between, but with the potential for loss so high it is worth considering how much coverage you need before the ground starts shaking.

Earthquake insurance is something that must be purchased separately and is not included in standard property insurance policies. Some standard insurance lines-- like commercial auto insurance -- will cover earthquake risk, but it is important that you talk to your insurance representative to know the details of your policy.

 

Businesses Briefs: Shameful fraudster

The Coalition Against Insurance Fraud has released its annual Insurance Fraud Hall of Shame, which recognizes the worst instances of insurance fraud in the previous year. This year's list includes the usual assortment of bumbling arsonists, fake theft victims and despicable killers. But it also included a story many business owners should be aware of as it demonstrates how far some people are willing to go to extort money from a business. A Pennsylvania man tried to get money from a 7-Eleven store after he claimed to have suffered severe injuries after slipping in a puddle of spilled coffee. The man also happened to be a professional wrestler and was caught on tape in the ring. He received three years probation and a fine.

 

Businesses Briefs: Terror backstop cuts

The Obama administration's 2011 budget plan proposes to reduce the federal subsidy for terrorism insurance through the Terrorism Risk Insurance Act. The program provides a backstop for claims related to acts of terrorism and was signed into law shortly after the Sept. 11, 2001, terrorist attacks. Because terrorist attacks have the potential to cause massive financial losses, the program was implemented to encourage private insurers to continue to offer the coverage. The budget proposal says that a reduction in the program will save the government money and encourage the private sector to come up with other means to reduce the potential losses involved in a terrorist attack. Many worry, however, that without a significant government backstop most insurers will simply stop offering the coverage.

 

Businesses Briefs: New faults

The Oklahoma Geological Survey has provided yet another example of why those outside California and other earthquake hotspots shouldn't let their guard down. According to a report in the Oklahoman newspaper, the survey has detected several small earthquakes just outside Oklahoma City. There have been nine earthquakes large enough for people to feel in the area this year, according to the newspaper. While California is famous for its quakes, and rightly so, other parts of the country are vulnerable to seismic activity, too.

YOUR PRIVACY:

 

Rust Insurance Agency values your trust as one of our most important assets. We are committed to preserving that trust and to protecting your privacy. This Privacy Policy is provided to you so that you will understand what Rust Insurance Agency does with the personal information you provide. This policy applies with respect to our insurance products and services.

 

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We collect nonpublic personal information about you to serve your insurance needs, conduct our insurance business, provide you with customer service, and fulfill our legal and regulatory requirements. “Nonpublic personal information” is information about you that is personally identifiable and that we obtain in connection with providing you insurance products and services.  The type of information that we collect includes the following:

 

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We disclose nonpublic personal information about our customers or former customers ONLY AS PERMITTED BY LAW and only for the purpose of securing insurance products on your behalf as requested by you, or to provide service on these policies such as claim resolution, coverage additions/deletions or policy remarketing efforts. Every insurance carrier we represent has their own privacy policy that you will receive directly from them. We do not sell your nonpublic personal information to anyone.

 

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In connection with the potential sale or transfer of its interest, Rust Insurance Agency reserves the right to sell or transfer your information (including, but not limited to, your name, address and other information that you provide through other communications) to a third party entity that (1) concentrates its business in a similar practice or service; (2) agrees to be Rust Insurance Agency’s successor in interests with regard to the maintenance and protection of the information collected; and  (3) agrees to the obligations of this privacy statement.

 

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As we have indicated in this Privacy Policy Notice, we collect certain nonpublic personal information about you, and we may disclose that information to certain non-affiliated third parties for purposes other than those expressly permitted by the Gramm-Leach-Bliley Act and the federal and state regulations implementing the Act.  If you prefer that we not disclose nonpublic personal information about you to non-affiliated third parties, you may opt out of these disclosures, that is, you may direct us not to make those disclosures (other than those disclosures that are expressly permitted by the Gramm-Leach-Bliley Act and its implementing regulations).

 

If you wish to opt out of such disclosures to non-affiliated third parties, you may:

 

• Call us toll-free at 1-800-235-1889

 

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Any controversy or claim arising out of or relating to our privacy policy, or the breach thereof, shall be settled by arbitration in accordance with the rules of the American Arbitration Association, and any judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.