Embed Size (px)
Citation preview
How to Handle the Death of an Employee
Raymond L. Hogge, Jr.Hogge Law
Attorneys and Counselors at Law500 E. Plume Street, Suite 800
Norfolk, Virginia 23510(757) 961-5400
www.VirginiaLaborLaw.com
This presentation is intended solely for informational purposes.It does not offered as legal advice.
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Initial Communications
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Initial CommunicationsCommunications with Deceased Employee’s Family• By Who?• HR manager• Employee’s supervisor• Senior management• Owner of company
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Initial CommunicationsCommunications with Deceased Employee’s Family• Extend condolences• Communicate by phone or in person• Caution: Avoid any statements that may suggest
company is liable for employee’s death
• Send the family a sympathy card, and a gifts such as flowers or a gift basket
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Initial CommunicationsCommunications with Deceased Employee’s Family• Ask about service arrangements• Ask whether coworkers are welcome• Ask how family wishes arrangements to be
communicated to company
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Initial CommunicationsCommunications with Deceased Employee’s Family• Determine wishes of family concerning sympathy
cards, flowers, and remembrances• Where should cards and flowers be sent?• Does the family prefer flowers or donations to charity?
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Initial CommunicationsCommunications with Deceased Employee’s Family• Advise family of available compensation, benefits,
and support services• Be sure to inform family of any benefits available to cover
funeral expenses • Some families may wish to defer this discussion until
after funeral
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Initial CommunicationsCommunications with Employees• Notify employees of the death• Who notifies?• HR manager• Employee’s supervisor• Senior management• Owner of company
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Initial CommunicationsCommunications with Employees• Funeral• If coworkers are welcome at funeral, inform them of
when and where funeral will be held• If family prefers coworkers not attend, inform employees
that the funeral is private• Inform employees regarding sympathy cards, flowers,
and remembrances• Inform employees of time-off policies for attending
funeral
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Initial CommunicationsCommunications with Employees• Employee Assistance Programs and Counseling
Resources• Companies with EAP should notify employees of the
availability of EAP service and provide EAP contact information to employees
• Companies that do not have EAP should notify employees of the availability of private counseling or community services
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Initial CommunicationsCommunications with Business Contacts• Inform customers, suppliers, vendors who dealt with
employee on a regular basis• Who notifies? Depends on relationship• Method of notification? Depends on relationship• Carefully consider communications with customers
having close relationship with deceased employee• Replacement employee should be assigned immediately
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving Forward
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardCoverage of Deceased Employee’s Work• Coverage alternatives• Assignment to existing staff• Assignment to temporary employee• New hire / transfer
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardCoverage of Deceased Employee’s Work• Deceased employee’s desk and office• Inspect promptly • Retrieve critical work-related materials• Identify and assign items requiring action• Identify personal items and make arrangements with
family for return
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardCoverage of Deceased Employee’s Work• Deceased employee’s email• Immediately back up all, including deleted items• Inspect in-box and respond promptly• Inspect sent items and follow up as needed• Inspect email folders and take appropriate actions• Consider whether and how to inform senders and
recipients regarding employee death• Privacy issues with personal email
• Company policy should provide all email is company property
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardCoverage of Deceased Employee’s Work• Deceased employee’s postal mail• Inspect and respond promptly• Consider whether and how to inform senders and
recipients regarding employee death• Redirect mail to new recipient• Privacy issues with personal mail
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardCoverage of Deceased Employee’s Work• Deceased employee’s voice mail• Inspect and respond promptly• Consider whether and how to inform senders and
recipients regarding employee death• Change greeting• Redirect phone number or extension to new recipient
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardCoverage of Deceased Employee’s Work• Deceased employee’s computer(s)• Inspect files promptly • Identify and assign items requiring action
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardCompany Property and Security• Computer Systems• Change password / disable deceased employee access to • company network • company data files • company bank accounts• company email • company computers• company website• company web pages (Facebook, Twitter, etc.)
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardCompany Property and Security• Desk and office• Secure employee’s desk / office• Inventory contents
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardCompany Property and Security• Office computer• Secure employee’s computer• Change password• Detach from internet and network• Back up or mirror hard drive• Prevent deletion of files• Scan for viruses and malware
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardCompany Property and Security• Cell phones, smart phones, tablets• Retrieve devices• Change passwords• Detach from internet and network• Back up or mirror hard drives• Prevent deletion of files• Scan for viruses and malware
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardCompany Property and Security• Company email • Change passwords• Immediately back up all, including deleted items• Scan for viruses and malware
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardCompany Property and Security• Company credit cards• Deactivate• Retrieve
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardCompany Property and Security• Company identification cards and badges• Deactivate• Retrieve
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardEmployee Grief and Productivity• Employers should monitor staff moral and
productivity in the days and weeks following the death of an employee
• Understanding and responding appropriately to employee reactions is necessary for effective management
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardEmployee Grief and Productivity• Five stages of grief• Denial• Anger• Bargaining• Depression• Acceptance
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardEmployee Grief and Productivity• Typical coworker reactions to employee death• Shock, numbness, disbelief• Anger, irritability• Sadness, remorse• Anxiety• Decreased concentration and memory• Headaches, stomach aches, muscle aches
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardEmployee Grief and Productivity• Factors influencing employee reactions• Length of time deceased employee was member of work
group• Deceased employee’s relationship with coworkers• Deceased employee’s tenure with company• Deceased employee’s role in company• Extent deceased employee was well known within
company• Circumstances of employee’s death (expected, unexpected)• Other current workplace issues
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardEmployee Grief and Productivity• Employee Assistance Programs
• Can help organization cope effectively with death of an employee by providing services including• advice to employers on how to best handle situations
related to employee deaths• on-site crisis management• telephone support to employees• counseling to employees
• Companies with EAP should notify employees of the availability of EAP service and provide EAP contact information to employees
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Moving ForwardEmployee Grief and Productivity• Private counseling or community services• Private counseling and community services may be
available to employees instead or in addition to EAP• Companies, especially those without EAP, should notify
employees of the availability of private counseling or community services
• Companies without EAP should consider retaining a social worker or grief therapist to provide assistance
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Compensation and Benefits
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Compensation and BenefitsPayment of Wages and Accrued Leave• Wages• Identify and comply with any state law requirements for
payment of wages earned by deceased employees
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Compensation and BenefitsPayment of Wages and Accrued Leave• Wages• In general, wages of a deceased employee must be paid
to the estate of the employee or to the employee’s beneficiary
• All payment of wages should be frozen until proper documentation (death certificate, W-9 for estate or beneficiary) has been received
• Any uncashed paycheck issued to a deceased employee should be cancelled and a new check should be issued to the estate or beneficiary
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Compensation and BenefitsPayment of Wages and Accrued Leave• Wages• The time the wages are paid to the estate or beneficiary
(during the calendar year within which the employee died or in a later calendar year) will determine• Income tax withholding• Federal Insurance Contributions Act (FICA) taxes• Federal Unemployment Tax Act (FUTA) taxes
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Compensation and BenefitsPayment of Wages and Accrued Leave• Accrued Leave• Identify and comply with any state law requirements for
payment of accrued leave earned by deceased employees
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Compensation and BenefitsPayment of Wages and Accrued Leave• Accrued Leave• If no state law requires payment of accrued leave, then
follow company policy regarding payment of accrued leave
• Any payment of accrued leave should be made to the estate or beneficiary of the deceased employee
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Compensation and BenefitsDistribution of Benefits• Locate beneficiary designations as quickly as
possible• Meet with the beneficiaries to discuss the benefits
they are eligible to receive and the process for making claims
• Obtain certified death certificates
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Compensation and BenefitsDistribution of Benefits• Some benefits affected by death of employee• Health insurance• Life Insurance• Disability Insurance• Accidental death and dismemberment• Workers compensation death benefits• Pension / 401(k)
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Compensation and BenefitsDistribution of Benefits• Health care flexible spending accounts• Determine balance prior to date of death• Notify family members concerning access to funds
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Compensation and BenefitsInsurance Continuation and Conversion• Health insurance should be terminated in
accordance with the policy as of the date of death
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Compensation and BenefitsInsurance Continuation and Conversion• If COBRA applies, notify spouse and dependents
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Work-Related Deaths
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Work-Related DeathsEmployer Investigation and Risk Management• Insurance• Notify potentially responsible insurance carrier
immediately• Workers’ compensation• General Liability
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Work-Related DeathsEmployer Investigation and Risk Management• Any work-related death should be immediately and
thoroughly investigated• The same applies to work-related injuries, especially
those which may lead to death• Investigation is necessary to assess risk for legal
liability • Workers’ compensation• Tort, if workers’ compensation does not apply• OSHA
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Work-Related DeathsEmployer Investigation and Risk Management• Investigation basics• Internal written report• Assignment of investigation• Witness interviews • Witness statements - written / recorded• Photographs and other documentary evidence• Investigative report to management
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Work-Related DeathsEmployer Investigation and Risk Management• Important employer policies• Safety and health• Injury reporting• Investigation• Corrective action
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Work-Related DeathsWorkers’ Compensation• Workers’ compensation laws provide benefits to
employees suffering work-related injuries or death• Medical expenses• Disability benefits• Death benefits
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Work-Related DeathsWorkers’ Compensation• Workers’ compensation may be available even if the
death of the employee results from a deliberate violent act by a coworker or third party
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Work-Related DeathsWorkers’ Compensation• Liability for workers’ compensation may depend on
the specific legal test applied by the state where the employee is injured or killed• Positional risk test• Actual risk test
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Work-Related DeathsOSHA• OSHA establishes minimum health and safety
standards for workplaces.• Examples:• Fall protection• Bloodborne pathogen
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Work-Related DeathsOSHA• Sources of OSHA Standards• Federal Occupational Safety and Health Act• State OSHA laws
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Work-Related DeathsOSHA• Enforcement• Federal: Occupational Safety and Health Administration
(part of U.S. Department of Labor)• State: State Agency (e.g., Virginia Department of Labor
and Industry)
• Violations of OSHA standards leading to employee deaths can result in civil and criminal penalties
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Work-Related DeathsOSHA• Keys to OSHA compliance • Adoption and enforcement of written employer safety
and health policies meeting or exceeding OSHA standards• Ongoing training of employees on occupational safety
and health requirements
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Deaths of Employees Who Are Owners
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Deaths of Employees Who Are OwnersNeed for Planning• When an owner of a business dies, a business can
face great uncertainty and confusion, especially if the business is small
• A written plan for continuation or succession of the business following the death of an owner is needed to enable the business to continue or to facilitate its winding up in an orderly fashion
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Deaths of Employees Who Are OwnersWills• The most basic form of planning is a written will • This can be especially useful for a sole
proprietorship• Key issues• What happens to the business?• If the business is to be continued, who will inherit it?• If the business will be wound up, who will receive the
proceeds• Who will operate the business in the interim?
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Deaths of Employees Who Are OwnersBuy-Sell Agreements• For corporations, partnerships and limited liability
companies, the owners should execute buy-sell agreements
• The surviving owners can be given the option to buy the interests of the deceased owner
• The surviving owners can be required to buy the interests of the deceased owner and pay the proceeds to the estate
• Important issue: how is the value of the owner’s interest determined?
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Deaths of Employees Who Are OwnersPotential consequence of failure to adequately plan• Litigation between beneficiaries• Litigation between owners• Dissolution of business
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
Deaths of Employees Who Are OwnersUse of Professionals• Effective planning for the death of a business owner
requires thoughtful consideration of alternatives and careful preparation of important legal documents, and should involve, at a minimum, a certified public accountant and an attorney
How to Handle the Death of an EmployeeRaymond L. Hogge, Jr.
We hope you found this presentation useful. If we can be of assistance to you, please contact us.
Raymond L. Hogge, Jr.Hogge Law
Attorneys and Counselors at Law500 E. Plume Street, Suite 800
Norfolk, Virginia 23510(757) 961-5400
www.VirginiaLaborLaw.com
