"This & That" Tuesday: Sexual Harassment, HIPAA Violations

December 16, 2014

 

Here is the latest issue of “This & That” Tuesday. I hope you find it to be informative and useful.

 

Announcements

You can always check out my website for upcoming speaking engagements that are guaranteed to be of value to business owners or for a list of topics that I can speak on at Chambers, Clubs, Business Associations, etc. More details about the events, topics and Human Resources 4U, in general, can be found on my website.

 

Upcoming Events

HR4U 101 Workshop, January 14, 2015. This will include information regarding the new employment laws and regulations for 2015 including the new “Paid Sick Leave” law.

Here is a link with more detailed information on the Workshop.

 

For 2014 and 2015, more details to follow:

January 6, Webinar on How to Build a Salary Structure

http://www.trainhr.com/ and go to Webinar Search – by month

 

January 21, Webinar on Coaching for Improved Performance

http://www.trainhr.com/ and go to Webinar Search – by month

 

January 27, Labor Law Update 2015, Irwindale Chamber of Commerce

 

February 11, Webinar on Discipline

http://www.trainhr.com/ and go to Webinar Search – by month

 

February 21, Institute of Management Accountants, San Gabriel Valley

 

Final Checks Sent Under $8 Million Decree in Sexual Harassment Case against Telemarketer

International Services, Inc. (ISI), formerly known as International Profit Associates, Inc. (IPA), based in Buffalo Grove, Ill., last week funded a final mailing of  checks to 82 women whom the EEOC said were victims of egregious sexual harassment at the company.  

 

The payment was provided for by a consent decree resolving the EEOC's long-running sexual harassment case against the company, which was filed in federal court in Chicago on June 12, 2001.  The parties agreed to the court's entry of the decree just as the trial was set to begin, on June 6, 2010.  Under the decree, ISI was required to pay $8 million in installments to the harassment victims.  The average of all payments per victim was approximately $100,000, and the last checks were mailed March 7, 2014.

 

In addition to the requirement that the company provides monetary relief for the victims, the consent decree included injunctions against sexual harassment and retaliation, and a series of measures designed to promote the eradication of harassment and increase the accountability of managers. It also required that ISI pay for two outside independent monitors to review policies and practices with respect to sexual harassment, evaluate the implementation of those policies and practices, assess the company's compliance with the training, prevention, and other measures being imposed, accept complaints of sexual harassment from employees, and report to the EEOC and the court.

 

The final report issued by the compliance monitors was filed in federal district court on March 10, 2014, and describes a company transformed as a result of the lawsuit.  The report describes "drastic improvements in the workplace environment."  The newly revamped human resources department at the company is described by employees interviewed by the monitors as "proactive with clear standards, policies and procedures to follow, highly professional, accessible, responsive and markedly changed for the best."

 

"By all accounts," the monitors report, "the Company today is a different and far better workplace than it was . . . three years ago."  They give much of the credit to the executive director of human resources at ISI, hired well after the EEOC's lawsuit was filed.  

 

Ricardo's Restaurant Pays $20,000 to Resolve EEOC Sexual Harassment Suit

Ricardo's Restaurant, Inc. of Erie, PA will pay $20,000 and furnish significant equitable relief to resolve a federal sexual harassment lawsuit filed by the EEOC. 

 

The EEOC charged that the co-owner of Ricardo's Restaurant frequently made offensive comments of a crude or sexual nature to, or in the presence of, Dorothy Hannah and other female employees, and that he also touched female employees in a sexual manner.

 

According to the lawsuit, the co-owner continued engaging in this unlawful conduct, despite Hannah's complaints about the misconduct.  The severe and pervasive harassment was so intolerable that Hannah was compelled to quit, the EEOC charged.  

 

In addition to the $20,000 in monetary relief, the consent decree resolving the lawsuit permanently enjoins Ricardo's Restaurant from engaging in sex discrimination, sexual harassment or retaliation.  The co-owner is specifically enjoined from making sexual remarks about or in the presence of, or sexual advances toward, any employees.  Ricardo's will create, enforce and disseminate a policy prohibiting harassment and retaliation.  For five years, the restaurant must retain a qualified third-party equal employment opportunity or human resources consultant to provide training to all owners, shareholders, directors, managers, supervisors and employees on prohibiting harassment, retaliation and discrimination.  The consultant will also investigate any complaints of sexual or retaliatory harassment made against the co-owner.  Ricardo's will report to the EEOC regarding its compliance with the consent decree and post a notice about the settlement.

 

County Pays $215,000 to Settle Health Information Security Violations

Skagit County, Washington, has agreed to pay $215,000 and comply with a three-year corrective action plan to settle potential violations of the privacy and security rules under HIPAA (the Health Insurance Portability and Accountability Act of 1996), the Office for Civil Rights (OCR) of the Department of Health and Human Services has announced. Skagit County is home to approximately 118,000 residents. “This case marks the first settlement with a county government and sends a strong message about the importance of HIPAA compliance to local and county governments, regardless of size,” said Susan McAndrew, deputy director of health information privacy at OCR. Entities covered by HIPAA include cities and counties and, as this case illustrates, the consequences for possible non-compliance can be severe.

 

OCR began investigating Skagit County and its Public Health Department in 2011, after receiving “a breach report that money receipts with electronic protected health information (ePHI) of seven individuals were accessed by unknown parties after the ePHI had been inadvertently moved to a publicly accessible server maintained by the County.” OCR’s investigation revealed the incident included the ePHI of 1,581 individuals. In some cases, the ePHI involved files about the testing and treatment of infectious diseases. 

 

According to the Resolution Agreement, Skagit County allegedly failed to provide notification, as required by the HIPAA Breach Notification Rule, to all affected individuals for whom it knew or should have known that the privacy or security of the individuals’ ePHI had been compromised.

 

Similar to other OCR investigations, the Office’s enforcement activity uncovered “general and widespread non-compliance by Skagit County with the HIPAA Privacy, Security, and Breach Notification Rules.” OCR looked back to April 20, 2005 (the effective date of the security rules) and alleged non-compliance with certain requirements of the rules, including the failure to maintain written policies and train employees.

 

Factoids

• Workplace interruptions cost the U.S. economy $588 billion per year
• Time lost to interruptions: 3-5 hours per day
• The interruption downward cycle: the diversion causes a restart that leads to a restart but with a loss of momentum that leads to frustration and then distress.
• 18% of people feel confident they will have enough money to live through their retirement but only 11% have at least $250,000 in savings and 36% have less than $1,000 in savings.
• The average manager manages 7 people compared to 5 people before the recession

 

Quotes

"Courage is being scared to death – – but saddling up anyway.”

~John Wayne~