Employment Agreements
An employer should consult with a qualified attorney before preparing employee handbooks, contracts, or other documents that might be construed as a contract of employment. Some states infer a promise of fair dealing as part of the employment relationship. Other states have found that an office policy manual or employee handbook, or written offers of “permanent” employment may constitute a contract —especially if the handbook contains no language to the contrary. Therefore, if termination is necessary, all rights provided by the law and established by agreement must be respected by the employer.
A HIPAA covered entity may include background checks on prospective workforce members who will have access to protected health information as part of its HIPAA compliance policies and procedures. If your practice is a HIPAA covered entity, you should consider including background checks among the safeguards that you implement to protect your patients’ information.
Bonding
Bonding new employees is a method some practices use to protect against theft. Often called a “fidelity bond” or “employee dishonesty policy,” bonding is a form of insurance against financial losses arising from dishonest acts of employees at work, such as the theft of money, medicine, or office equipment. These policies typically are issued as a part of a customized insurance package for your practice. Seldom issued separately, they are added on to your property, practice, or liability insurance for an additional premium. Most carry a deductible similar to property insurance. Because of confidentiality considerations, few of these policies survey or research personnel as a part of the service.
Bonds can apply to one individual or all employees of the practice. But in the interests of fairness and employee relations, you can’t bond for just one employee whom you suspect of dishonesty. It’s easiest, of course, to bond employees as they are hired. When you hire new team members, that’s the time to introduce bonds to all of your employees — both new and current. As you consider bonding employees, you may weigh the advantages of added protection to practice finances against the disadvantages of bonding cost and potentially negative impact on employee morale.
Often called a “fidelity bond” or “employee dishonesty policy,” bonding is a form of insurance against financial losses arising from dishonest acts of employees at work, such as the theft of money, medicine, or office equipment.
How to Make an Offer
Once you’ve made a hiring decision, offer the candidate the job. A job offer can be made inperson, over the phone, or in writing. Most employers offer the job over the phone to obtain a quicker response and to hire an employee before someone else does.
After the interview, you should have a good idea of what salary you will offer the candidate. This will be a combination of the following factors: employee’s credentials, employee’s experience, job responsibilities, and a market analysis of salaries in your community for similar positions. For more information on determining a salary, see Chapter 5: Employee Benefits.
As you make the offer, do not make any employment promises — or statements that can “seem” like promises — that you cannot or do not wish to keep. If the employee were to ever take a grievance to court, these statements could be interpreted as a “binding contract” and be inconsistent with your at-will employment status.
The official written offer can then be mailed to the employee. Again, the offer should be written in a way that cannot be seen as a “binding contract.” In fact, if you are an at-will employer, the offer letter is an excellent way to reiterate that at-will employment status. Avoid using phrases that imply a long-term relationship, such as “our company family” or “job security.” The offer letter should state the rate of pay on an hourly, weekly, or monthly basis — never on an annual basis. Offering an annual rate of pay can be interpreted as a yearly contract.
The written offer should contain the following information, and should be reviewed by legal counsel:
• Position
• Wages
• Benefits
• Office location and working hours
• Beginning date
• Any paperwork that should be brought in on the first day of work
• Any other information you want to include about the practice
Figures 1.18 and 1.19 show sample letters to new employees.
FIGURE 1.18 SAMPLE LETTER TO NEW EMPLOYEE
Rejection of an Applicant
As an act of courtesy, be sure to let other the other job candidates know of your decision. A letter should be sent and their applications can remain on file.
FIGURE 1.19 SAMPLE APPLICATION REJECTION LETTER
Summary
Hiring employees is an important but daunting process, and it may take some practice to develop a seamless system. It is essential to be knowledgeable of state and federal laws during the interviewing and hiring process. While this book offers a general overview of hiring do’s and don’ts, it is not state-specific and laws are constantly changing. The advice of experienced legal counsel specializing in employment law can help avoid potentially costly mistakes.
It is also important that your staff be involved in the hiring process since they will be working closest with the new hire. This has the additional benefit of helping your staff to feel invested in the practice and gives them a sense of ownership and responsibility.
Finally, remember that the more relaxed you are during the hiring process, the more comfortable potential candidates will be. Be sure to encourage an open dialogue, be ready to answer questions, and be positive about the position and your practice.
Chapter 2:
Office Policies
Manual Introduction and Description