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BABM Magazine > Challenges & Solutions

Challenges & Solutions

Welcome to BABM Challenges & Solutions where you can read succinct articles online. The articles will provide you with valuable information that can be immediately implemented to help take your business and personal success to the next level.

Challenge #1

"How do I terminate an employee who gets his job done, but causes constant friction and has a negative attitude? This employee also happens to legally be considered a minority."

Challenge #2

As a state certified contractor, I spent a lot of time and money to do things legally. My license, insurance, and continuing education add significant costs to doing business. Then I am beat out by unlicensed, uninsured persons advertising as "Home Repairmen" or "Handyman", who will have the homeowner pull the permit and then do the same work - but much cheaper - because they don't have the same expenses that I do. On bigger jobs, they even hire some of the same sub-contractors that I use, and supervise them as though they were a licensed General Contractor - which they aren't! The Times Classified runs their ads and so does the Flyer - no license number - which is illegal. They have business cards - no license number - which is also illegal. They put signs on their trucks and do business - also illegal. How do I compete with this? I am not a snitch and can't justify being a one-person crusade to tattle on these people. Besides, there are too many of them. There doesn't seem to be any enforcement. Unless a complaint is filed, the jurisdictions having authority do nothing. What can I do?

Challenge #3

I’ve had an unsubstantiated sexual harassment suit brought against my company. Even though it was eventually found not to have merit, it was very costly. Is there insurance available for such an unfortunate occurrence?

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Challenges & Solutions

Challenge #1

"How do I terminate an employee who gets his job done, but causes constant friction and has a negative attitude? This employee also happens to legally be considered a minority."

Solution #1

Florida is an “at will” employment state. This means that if the employee does not have an employment contract, an employer has the right to fire the employee for any reason or no reason. An employer, however, cannot terminate an employee in violation of the state and federal discrimination laws.

Certainly, causing friction and having a negative attitude are sufficient non-discriminatory reasons to fire the employee. And if your company has less than 15 employees, it is not subject to these discrimination laws. Assuming you have the requisite number of employees, and assuming that you have already tried to counsel the employee in hopes of salvaging an otherwise productive employee, there are certain steps that you can take to try to avoid a potential discrimination claim. First and foremost, you should make sure that you have documented your problems with the employee, preferably in the employee’s personnel file. Include memos describing any counseling sessions, as well as any complaints from other employees. Also, if you have an employee manual that sets forth a progressive discipline policy, you should follow that policy to the letter. If your company has a severance policy, you should consider offering the employee severance pay in exchange for a release of the employee’s potential claims. Be careful though, as offering severance coupled with a release might give the employee the idea that he or she has a valid claim.

Finally, when you fire the employee, be professional and treat the employee with dignity and respect. Many claims are filed simply because the employer unnecessarily adds insult to injury in the termination process. There’s probably nothing you can do to prevent a discrimination claim, but if you follow these steps, you will at least be in a better position to successfully defend yourself if and when a claim is filed.

William J. Cook
Barker, Rodems & Cook, P.A.
400 North Ashley Drive, Suite 2100
Tampa, Florida 33602
wcook@barkerrodemsandcook.com
(phone) (813) 489-1001
(fax) (813) 489-1008

Solution #2

In this situation, as in many circumstances in business, the law should be treated as an outer bound on your behavior. Of course you should never rush blindly into any complicated business problem without a reasonably good idea of what the law says you may do -- and may not do -- to solve it. But it is a mark of good leadership to treat reliance on legal boundaries as the contingency of last resort.

You say this person gets his job done, so perhaps he is worth salvaging? Before just firing him, it might first be worth your time to explore some remedial possibilities for keeping this productive person around.

Why not take this person to lunch? Tell him outright that you are happy with his performance, but not with his attitude. Tell him the personality conflict is hindering your impression of his overall suitability for working in your company. Tell him you don't expect everyone to be happy all the time, but that you do not want to have to deal with a chronically bad attitude. Ask him if there is anything you can reasonably do to increase his job satisfaction. If he is frustrated with his work due to perceived problems, encourage him to stop complaining and to make productive suggestions for doing something about it. Figure out what his problem is and ask for his advice on how to solve it. Give this person the opportunity to take responsibility for his behavior.

Of course, you must be open to this kind of frank discussion and do your best to forestall it from devolving into a heated argument. You must steel yourself against what may turn out to be a litany of criticism. And, ultimately, you must be prepared to accept that there is no solution and that you've just got yourself a bad apple.

Either way, you will have at least tried to keep the matter as productive as possible, not only within the bounds of the law, but also with tact, good ethics, and steadfast leadership.

Brent Britton, Esq.
Squire, Sanders & Dempsey L.L.P.
201 N. Franklin Street Ste 2100
Tampa, FL 33602-5813
813-202-1300
bcbritton@ssd.com


Challenge #2

As a state certified contractor, I spent a lot of time and money to do things legally. My license, insurance, and continuing education add significant costs to doing business. Then I am beat out by unlicensed, uninsured persons advertising as "Home Repairmen" or "Handyman", who will have the homeowner pull the permit and then do the same work - but much cheaper - because they don't have the same expenses that I do. On bigger jobs, they even hire some of the same sub-contractors that I use, and supervise them as though they were a licensed General Contractor - which they aren't! The Times Classified runs their ads and so does the Flyer - no license number - which is illegal. They have business cards - no license number - which is also illegal. They put signs on their trucks and do business - also illegal. How do I compete with this? I am not a snitch and can't justify being a one-person crusade to tattle on these people. Besides, there are too many of them. There doesn't seem to be any enforcement. Unless a complaint is filed, the jurisdictions having authority do nothing. What can I do?

Solution:

You are operating your business within the laws of the State of Florida and within the confines of the licensing boards to whom you report. You are correct that, by law, the license number must be displayed on the contractor’s vehicle, business cards and contract. However, we are all not law abiding citizens and business owners. That's why there are regulatory boards.

The Department of Business Professional Regulation/Construction Industry Licensing Board is responsible for licensure and regulation of your industry. Their phone number is 850-487-1395. The complaint process is relatively simple. Further, within the county in which you work, there are also licensing requirements and you should contact them as well. Here are some numbers that will help you:

  • Citrus County Building Division, Department of Development Services, (352) 527-5310; citrus.fl.us/building/online permitting.htm;

  • Hernando County Development Department, (352) 754-4050; www.co.hernando.fl.us/bldg;

  • Hillsborough County Contractors Licensing, (813) 635-7309 or (813) 635-7308; www.hillsboroughcounty.org/pgm/contractor;

  • Pasco County Building Development, Contractor Licensing, (727) 847-8797; opal.pascocountyfl.net and;

  • Pinellas County Construction Licensing Board, (727) 536-4720.

You must also view it as a necessary part of doing business.

Don't view the situation as "tattling", but rather as upholding the integrity and quality of your profession. You clearly are not alone in this predicament. How many contractors obtain licenses, pursue continuing education, and secure Workers Compensation Insurance?

Ask around and you will find an army for your crusade.

Albert Garcia is Tampa-based workers compensation attorney with over 15 years in the business and insurance industry. He has a bachelor of arts degree from the University of Florida and a Juris Doctor from Stetson University. albertgarcia@flatworldmedia.com.


Challenge #3

I’ve had an unsubstantiated sexual harassment suit brought against my company. Even though it was eventually found not to have merit, it was very costly. Is there insurance available for such an unfortunate occurrence?

Solution:

Yes. It is called EPLI coverage - Employment Practices Liability Insurance. A couple of the bigger insurance companies like AIG and CHUBB provide this. However, there are many exclusions and I recommend reviewing all of them with your agent prior to purchase.

Albert Garcia is a Tampa-based workers’ compensation attorney with over 15 years in the business and insurance industry. He has a bachelor of arts degree from the University of Florida and a Juris Doctor from Stetson University.

Editor’s Comment

There were several insurance companies who responded to this challenge, so there should be many options for the challenge inquirer. Now that we know there is insurance available for this type of claim, we’ve asked an expert to submit an article for the next issue that will expound on this subject.
 

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