Insights and ideas to help your business grow


Issue No. 15, January 2015
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Foundation Insurance Group

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The Purple Haze of Medical Marijuana Laws in the Workplace 


A year ago, we wrote about employees' and employers' rights when it comes to medical marijuana. And since then, two more states have legalized medical marijuana, and three (along with D.C.) have legalized recreational use. While your right to create and uphold a drug-free policy was clear back then, courts in Colorado and Rhode Island are now considering workplace discrimination lawsuits. What exactly is legalized and protected in each of these states is also different, and sometimes ambiguous. It's getting hazy out there.

 

Here are five things you need to know as an employer.

 

1. Federal Law (Still) Says No:

 

One thing has remained clear: weed is still illegal on a federal level. If your business receives federal funding, that trumps your state's marijuana laws. The same goes if your employees are involved in transportation (from truck drivers to ship captains to aircraft maintenance personnel). Those workers (and their employers) answer to the Department of Transportation - which recently reiterated its no-doobies-for-drivers rules for both medical and recreational marijuana.

 

2. The Patchwork:

 

The laws in the twenty-three states - and D.C. - with legalized medical marijuana are all different, ranging from how much an individual can grow at home (four plants in Montana, a dozen in Oregon...) to acceptable ways to imbibe (New Yorkers aren't actually allowed to smoke weed--edibles and vapor only).

 

When it comes to the workplace, there's just as much variation. While no state says employees can be stoned on the job (we'll come back to that shortly), different laws give employers and employees different rights. In Rhode Island, employers are specifically prohibited from discriminating against an employee for his or her pot prescription. In Massachusetts, employers aren't required to change their drug policies to "accommodate" medical marijuana, while Colorado employers have to tolerate everything except the "use, consumption, possession, transfer, display, transportation, sale or growing of marijuana in the workplace."  

 

You get the idea. It's vital to make sure you're familiar with the laws in your state, and that any policies your company has is consistent with them - but even that might not be enough.

 

3. The Challengers:

 

Currently, medical marijuana is not protected under the Americans with Disabilities Act, meaning an employer can theoretically fire an employee because of his or her prescription. However, that's now being challenged.

 

In Rhode Island, the ACLU recently filed a suit on behalf of Christine Callaghan, who was turned down for a job after mentioning her prescription for marijuana to deal with debilitating migraines. Rhode Island's law specifically protects pot prescription holders from employment discrimination, but the argument doesn't stop there: the ACLU also argues that discriminating against the treatment is a kind of disability discrimination.

 

Meanwhile, Colorado's Supreme Court is trying to work out where company policy stands between state and federal law. Dish Network fired customer service rep Brendan Coats after a drug test found inactive THC in his system. On one side, Dish has a strict no-drugs-ever policy, and pot is still illegal on a federal level - but on the other side, marijuana use is legal in Colorado both by prescription and for recreation. Colorado also has a law that says employers can't fire workers for legal activities they do off-the-clock. Adding to all the confusion is the question of what "off-the-clock" even means: Dish's lawyer argues that, even though Coats wasn't high at work, the benefits of his pot use (he's paralyzed from the chest down, and has a prescription to control muscle spasms) still extended into work hours. Not surprisingly, the Colorado court has been mulling this one over since September.

 

4. Safety First:

 

With cases like these popping up around the country, what's an employer to do? The Labor Law Center and Forbes

both suggest you change the way you think about your company's pot policy. If your state allows marijuana use, that legal gray area can leave a no-marijuana-ever policy open to discrimination suits. Instead, the important thing becomes the reason most companies have drug policies in the first place: safety. No state protects employees who are high at work, and no state ever will.  

 

5. We Can Help:

 

In recent years, marijuana's legal status has been changing rapidly and unevenly around the country. It's important that you keep up with these developments, and make sure that your business' policies are up to date. It's also key that you protect your business if a suit does come up - and that's where Employment Practice Liability Insurance (EPLI) comes in. Talk to us about how best to protect your business - and of course, we'll keep an eye on this as it develops, too. We're here to help you avoid getting dazed and confused.

After the Quake: What We Learned From Napa's Wine Spill

 

At the end of this summer, Napa Valley vintners were wading through tens of thousands of gallons of spilled wine, not to mention damaged facilities and broken equipment. Luckily the earthquake hit on a Sunday, and no workers were around to suffer injuries. Still, insurance is covering more than $80 million in damages, a sum expected to go up as the Napa Valley wine industry sees longer-term effects on supply chains, delays in getting back to production, and lost tourist dollars as tasting rooms and other spaces are closed for repairs. But that's just the companies with earthquake insurance - and they're a tiny minority in Napa.

 

The percentage of Napa Valley wine producers with earthquake insurance is in the single digits. The great majority have long considered the insurance a waste: the 6.0 earthquake was the first in the region since 1989, and the low risk and low demand left smaller wine producers thinking that the coverage wasn't worth the expense.

 

The puddles of cabernet and zinfandel have all been mopped up, but it's still too early to tell if those smaller wine producers will show new interest in coverage, a trend that could help drive down earthquake insurance premiums for businesses. Instead of spending money on expensive earthquake insurance, producers are upgrading equipment and instituting policies to withstand natural disaster damages - like reinforced barrel racks that cost twice as much as the industry standard, and not stacking more than five barrels high.

 

We can all pull a few important lessons from Napa. Earthquakes are notoriously difficult to predict, as even the pollsters and predictors FiveThirtyEight admit. Earthquake insurance is clearly expensive, but most businesses are in regions where other natural disasters, especially storms, are becoming much more common and causing much more damage. For those businesses, taking a page out of the Napa vintners' playbook and looking for ways to fortify against natural disasters is a good idea - but outside of earthquake country, the real value of insurance is indisputable.

 

If you have any questions about the best way to protect your business against earthquakes, storms, floods, and other unpredictable natural disasters, we're happy to discuss the pros and cons and help you evaluate what would work best for your company. Talk to us about the particular risks of your region, so you can raise your glass to the Napa vintners from solid ground.

What's the Secret Sauce for Team Building?

Have you ever used photo-editing software? Sometimes just a slight adjustment in contrast or exposure can make dramatic improvements, simply by bringing out more of what's there already.

 

In business organizations, small shifts in attitude can also bring about big changes too. Consider this amazing data from the Gallup organization: Employee engagement increases from 9% to 73% when company leaders focus on supporting employees' strengths.

 

Even if your business doesn't invest a lot of money or time in staff training, and even if your people are all long-term employees, there are myriad opportunities for you as a leader or owner to boost morale, staff engagement, and productivity. Here's how.

 

Companies are more successful and employee morale and engagement flourishes in organizations that support their own people with the same enthusiasm and care they extend to customers and clients.

 

You get there by creating a culture of appreciation and that starts with the attitude at the top. When company leaders convey gratitude by giving employees ongoing positive feedback, enthusiasm and energy soar, people thrive and the organizations flourish.

 

What ever the group size - from families and friendships to corporations and countries, appreciating others is a powerful ingredient in fostering group cohesion and energizing individual engagement in shared goals.

 

At the very heart of a culture of appreciation is the element of trust. As the Gallup data shows, when employees trust their company leaders, engagement increases dramatically. And how are leaders able to instill that trust in their people?  

 

It's not about being infallible, powerful, or controlling. Leaders earn trust simply by showing they're reliable, sincere and competent. 

 

When there's no conflict between what the leaders say and what they do, employees' confidence is strong.

 

Whatever happens - even when mistakes are made, confidence stays strong because people trust that the leaders can get them back on course.

 

We trust people when we share similar goals.  We trust people when we see their intentions and their actions are in sync. And we feel we can rely on them because we trust their sincerity and judgments.

 

In a company culture that's based on appreciation and trust, curiosity is widely encouraged. Leaders emphasize the practical and doable and don't get bogged down with abstract concepts. The questions they ask - frequently and abundantly are focused on who, what, how, and where - instead of why.

 

They address problems by gathering data and getting input from others at the organization, which also helps to strengthen cohesion.

 

So forget about power, control, and demands on doing everything perfectly. And work on fostering a culture based on widespread appreciation and genuine curiosity and watch employee engagement and productivity flourish.  

 

 

 

 

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All content © 2014 Professional Marketing Associates, Inc. This newsletter is not intended to provide specific legal or insurance advice. Please consult your individual agent for further information on the topics covered.