Employment Practices Archives - CAMICO

Claim Chronicles 127-B

Amber — Tue, 18 Nov 2025 16:24:49 +0000

Topic: Employee Discrimination / Termination

In September 2021, Lindsay Johnson began working as an accountant for Brown Jones & Williams CPA firm. A year later, when her mom was diagnosed with cancer, she informed the company’s Human Resources (HR) director of the diagnosis and said that she would need to take a leave of absence to care for her mom while she underwent treatment. HR approved her request; however, Johnson alleged that managing partner at the firm, Matt Williams, retaliated against her by giving her a heavier workload and refusing to communicate with her. Johnson said she was a high performer at the company and received a pay increase in October 2022 because of her work performance (the firm claimed that all employees received a raise at that time and that it wasn’t related to her performance). Two weeks later, when Johnson informed Williams that she needed time off on October 22 to attend her mother’s treatment session, Johnson claimed that Williams scheduled a meeting with her that day and made a sarcastic comment about her not being in the office when she joined the meeting remotely. A few days later, the firm involuntarily terminated Johnson’s employment, citing poor work performance that culminated in an act of dishonesty as the basis for her dismissal. Williams stated that after he discovered multiple errors in a tax return that Johnson was responsible for reviewing and submitting, she admitted that she had not reviewed it. Following her termination, Johnson filed a claim against the company with a pre-litigation demand of $980,000 for reasons that included: associational discrimination in violation of the Fair Employment and Housing Act (FEHA), FEHA retaliation, intentional infliction of emotional distress, wrongful termination of employment in violation of public policy, and failure to provide reasonable accommodation. Instead of proceeding to trial, the case was settled during mediation for $150,000.

Select the answer that is the correct response:

1. What is the biggest factor regarding the claim above?
a. The amount of time off that Johnson (the employee) requested to care for her mother during treatment.
b. Substantial documentation the CPA firm had regarding issues related to Johnson’s work performance before and after she disclosed her mother’s cancer diagnosis to the company.
c. What Williams (partner at the CPA firm) specifically said to Johnson when he made a sarcastic comment during their meeting.

2. What would have been the primary challenge for the CPA firm if the case had proceeded to trial?
a. The number of claims that Johnson was making against the company.
b. The firm’s ability to disprove Johnson’s allegations in court.
c. The amount of money Johnson was demanding along with defense costs that the firm would be required to cover.

Correct Answers:
1. b. The firm had documentation showing its frustration with Johnson’s work performance; however, the documentation came after she disclosed her mother’s cancer diagnosis. And even if the firm had earlier documentation, Johnson wasn’t terminated for poor work performance, she was primarily terminated for dishonesty, which came after she made the firm aware of the diagnosis. Given the lack of documentation of work performance issues before the cancer disclosure (Johnson also received a pay raise right before her termination), the firm would have had a hard time disposing the claim of associational discrimination under FEHA on summary judgment. This case illustrates how proper documentation and timing can significantly impact employee termination and potential litigation.

2. c. Johnson was demanding $980,000 and the CPA firm only had a $250,000 burning limits policy. If the firm chose to fight the case in litigation, most likely the company would have burned through the policy in defense costs and possibly left exposed to an adverse verdict award that the firm would not have been able to cover. Also, it was unlikely that the case would have been disposed before trial due to factual disputes about requests for leave and the proximity of termination in relation to the cancer diagnosis.

The “Claim Chronicles” are drawn from CAMICO claims files and illustrate some of the risks and pitfalls in the accounting profession. All names were changed.

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Recruit, Engage and Retain: Creating a Workplace Where Your Employees Will Thrive

Amber — Thu, 01 Feb 2024 20:42:39 +0000

WIIFM, the age-old acronym for “What’s In it For Me,” is the mantra of today’s workforce, whether for prospective candidates or long-term employees. Firms are being pressed into looking for creative ways to attract talent and to retain that talent. And with the cost of onboarding a professional rising to the tens of thousands, firms are eager to maximize their return on investment.

It goes without saying that happy employees are less stressed, more productive, and most importantly, engaged. An employee who is engaged will support the firm’s mission, trust management, and look for reasons to stay. Humor and laughter are just two ways to support happy employees. Smiling and laughing can be contagious, defuse conflict, and bring people together. Messaging starts at the top, and employees will follow the lead, so why not encourage management to incorporate “happy” into your management style? Employees who feel appreciated are happier. Firms who encourage celebrating employees are more attractive. Everyone enjoys a moment in the limelight, so shine the attention on employee wins such as bringing in a new client, passing the CPA exam, achieving a tenure milestone, etc. Taking the time to stop and celebrate each other supports workplace happiness.

In addition to feeling happy and positive at work, employees want to know they are working for a firm that demonstrates belief in the greater good. In fact, studies have shown that 83% of Millennials remain loyal to companies who contribute to socially responsible causes such as green energy, climate, and other environmental-related causes. Firms can show their commitment to employees who support philanthropy by allowing paid time off for volunteering, hosting a firm-wide fundraiser, matching an employee’s donation, or simply highlighting a non-profit organization supported by an employee.

A recent survey conducted by the American Psychological Association revealed that 77% of workers reported experiencing work-related stress with symptoms ranging from emotional exhaustion, lack of motivation, and a desire to quit, just to name a few. During busy seasons, firm employees often spend more time with coworkers than they do with their own family. The lines blur between work and home and co-workers and family, which means work-related stress can flood an employee’s personal life. Again, the messaging starts from the top, meaning partners and managers must be mindful of their messaging and pay attention to signs of burnout. Firm-sponsored wellness programs aimed at reducing stress are plentiful and a low administrative burden on firm administrators. Providing a stipend to offset the cost of an employee’s health club membership, a weekly in-house yoga or mindfulness class, and firm-sponsored applications to praise employees for positive mental and physical health hygiene are just a few of the initiatives that firms are incorporating into their culture to demonstrate support for an employee’s mental and physical health.

Recognizing and understanding an employee’s needs begins with active listening and paying attention. Focus on the positive, but be prepared to recognize the negative. Create a workplace where employees thrive, support others, and realize the value of an employer who cares about what’s important beyond the business and the bottom line, and employee retention will flourish.

If your firm has an Employment Practices Liability policy with CAMICO, feel free to contact CAMICO at 800-652-1772 or send an email to lp@camico.com with your employment-related questions.

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Employment Applications: More Than Just an HR Best Practice

Amber — Fri, 06 Jan 2023 16:07:37 +0000

Why would we ask a professional candidate with a well-crafted resume to complete an employment application? While many might think that a resume and an employment application are redundant, not all the information requested on an employment application is included on a resume. It is typically a best practice to simply let the candidate know that for the actual work history section of the application, they can indicate “see attached resume” and complete all other questions. It’s these other questions that can provide a more well-rounded picture of the applicant.

As Human Resources ambassadors for the firm, we are so careful to include all the required verbiage in our employee handbooks to comply with policies including the Americans with Disabilities Act, Title VII of the Civil Rights Act, and at-will employment, to name just a few. But the handbook is only made available to employees of the firm. What about applicants? How do they know of the firm’s commitment to fair employment and compliance with local, state and federal employment law? This is where the employment application becomes key.

In addition to containing legally compliant language, the application should also include questions about the candidate that will help the recruiter better understand if and how a candidate would acclimate to the firm’s workplace and culture. Questions such as:

Has the candidate ever been involuntarily terminated or asked to resign?
Can the candidate explain any gaps in their employment history?
Would the candidate relocate if necessary?
How does the candidate feel about business travel?
And the most important question: can we contact your previous employer?

Responses to these questions can provide the recruiter with insight into the candidate’s corporate behavior, work history and work ethic. Another consideration would be whether the position is or could be a remote or hybrid position. If the firm operates in a remote environment, questions should be asked to determine whether remote training and onboarding would be suitable for the candidate given their learning and communication style. If that was a possibility, another question might be:

If necessary, could the candidate work in a remote work environment?

Think of the employment application as a two-way communication vehicle. In addition to the detailed questions for the candidate, the employment application also provides the perfect opportunity to include language such as:

At-will employment clause
A statement of truth for the candidate stating that all information given is true and accurate
An ADA statement (if applicable)
Authorization for a background check
An understanding that the candidate will need to comply with rules related to the I9 Form

The firm uses the application to gather key information about the applicant. The more information the recruiter has prior to an interview, the more focused the interview can be, which can help them determine early on whether a candidate is a good fit for the firm. But the application also serves as a method to inform the applicant of the firm’s commitment to maintaining a safe and compliant workplace. It provides a layer of protection for the firm should the candidate file a claim of wrongful hiring practices.

So the next time you think about why it’s necessary to have applicants fill out these detailed applications, remember that it’s for the benefit of both the candidate and the firm.

If your firm has an Employment Practices Liability insurance policy with CAMICO, feel free to contact CAMICO at 1.800.652.1772 or send an email to lp@camico.com with your employment-related questions.

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