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At Will Employment – Don’t Screw it Up

November 23, 2010

Filed under: Uncategorized — Mayer A. Levitt, DMD @ 8:27 pm

The concept of “at will employment” is probably the most important feature – the seminal arrow in the quiver – of employer/employee relationships. Simply stated, it means that an employee works for the dental practice at the will or discretion of the dentist – and that employee can be terminated at any time provided the dentist does not discriminate. As long as this concept is clearly and explicitly stated in the office policy manual in the proper “legaleze,” the dentist should be protected from an unlawful termination lawsuit.

I commonly see two flagrant “no-no’s” showing up in office policy manuals which unwittingly contradict the at will employment concept. The first is a description of a ninety day trial period of employment. This infers that if a new employee gets by the probationary  period of time and is still working at the practice, that future employment is somehow guaranteed. You passed the test, and you now are a real employee.

The second example is when the manual states that if an employee decides to leave the practice, it is expected that he or she give two weeks notice. If the employee must give two weeks notice, wouldn’t the employer then be expected to do the same? This clearly would contradict at will employment.

A poorly written office policy manual can sometimes do more damage than no office policy manual. Review your manual – and if you have anything resembling the above mentioned inconsistencies – remove them immediately.

Benefit Packages for Staff

November 12, 2010

Filed under: Uncategorized — Mayer A. Levitt, DMD @ 9:23 pm

My last few blog posts have been on the topic of office policy manuals. I would like to continue that discussion with some thoughts regarding employee benefits and the necessity for including them in your manual. Staff benefits usually involve some combination of vacation days, personal days, paid holidays, dental benefits, continuing education, retirement plans, and health care.

I feel that the cost of staff benefits should be thought of as part of your overall marketing budget. Marketing most often is a combination of strategies to attract more new patients – obviously very important. But if assembling and keeping a talented, loyal, hard working staff is a major component of the success of your dental practice, why not market your benefit package as a way to find and retain these valuable employees?

These benefits are usually offered to full-time employees, so it is essential to clearly define the hourly requirements to qualify. And if you intend to offer a scaled-down package of benefits to part-time employees, be very clear on the distinctions. It has been my experience that in many practices, the manual has been inconsistent thereby creating confusion and dissension. How ironic-the dentist in trying to be generous ends up being the bad guy or gal.

Over the next three to four weeks, I will examine these benefits in detail, and share my thoughts of what works- what doesn’t work- and why. Make no doubt about it-even though the recession and the weak economy have created a deeper labor pool of talented people seeking jobs, an attractive well managed package of benefits may often be the key to finding your next superstar.

Understanding EPLI

November 5, 2010

Filed under: Uncategorized — Mayer A. Levitt, DMD @ 2:00 am

Welcome to America where anyone can sue anyone for anything. And why not? We are the only country in the world  where lawyers are allowed to take cases on a contingency basis (the attorney only gets paid if the lawsuit is successful). We are also the only country where if you lose your lawsuit, the loser most of the time does not have to pay the legal costs that you incurred to successfully defend yourself.

There is an excellent product that I recommend for all of my clients called EPLI – the acronym for  employment practices liability insurance. The annual premium cost for a policy with protection of $250,000 is usually under $1000. This policy covers the cost of a legal defense and a judgment against. Remember-if you get sued by an employee for something like harassment, discrimination, or unlawful firing-and if you lose-the judgment you will have to pay is NOT  covered by your malpractice insurance. And even if there is absolutely no validity to the claim against you, you have to take the necessary steps to defend yourself-and the costs of litigation are very significant. It would not be unusual to have to fork over 20 to 25 K as a retainer for a defense attorney.

With EPLI  at least you don’t have that worry. As I mentioned in my most recent blog post a well written office policy manual will serve as a deterrent for a large majority of potential lawsuits.  But EPLI provides that extra level of security and comfort. Please check with your insurance agent, and be sure to get coverage immediately.