Total Tax
August 2008
Corrective Action. . . Constructing Corrective Action Documents
The result of corrective action, like that of performance appraisals, is to affect behavior or conduct. In most cases, corrective action should be used to correct unsatisfactory behavior or conduct and improve the individual’s performance. The best demonstration of successful corrective action is the employee who becomes a more valuable organizational resource. To ensure clarity and effectiveness, corrective action documents (for verbal or written warnings) should follow a basic framework. The following steps walk you through this framework and provide you with written samples for documenting corrective action.
Introduce the Action
Begin the written document by notifying the employee that due to an issue performance, attendance, conduct, policy violation, etc.), he/she is receiving a verbal/written warning.
It has become necessary to give you a verbal warning for continued performance issues. This is not an action that is taken lightly, nor should you consider it so, as it means that the continuation of your employment is in jeopardy.
Define the Deficiency or Problem in Clear Language
Focus on the specific performance or conduct issues in order to demonstrate to the employee what needs to be changed.
Over the past three months, you have provided incomplete and inaccurate data in your month-end reports; therefore, each month’s financial performance was misrepresented.
Explain the Impact of the Deficiency or the Problem
It is important to help the employee understand the seriousness of the problem and focus attention on the company’s needs.
As a result of the inaccurate financial reports, several levels of management have based decisions on incorrect data or have had to delay decisions until accurate data is available. On at least two occasions, client reports have been inaccurate and had to be recalled and corrected, resulting in missed deadlines and inconvenience to the client.
Note Previous Related Discussions or Corrective Action
In many cases, an incident is not isolated; therefore, it is important to detail what led to this action. Listing previous discussions helps to establish that reasonable efforts to correct the problem have been made. Include references to agreed upon goals if possible.
On December 5 and January 2, we met and discussed the errors on the financial reports. At your request, we agreed to allow for additional training. You attended a class on December 11 and cross-trained with a senior member of the department during the first two weeks of January. On February 3, after discovering continued errors on the reports, we met again and had a discussion about the report errors. You stated at this time that you had been very busy with other projects and did not have the time to double check your work. We agreed to shift two of your projects to a teammate for a period of one month to allow you to focus on the accuracy of the reports.
Offer Assistance to Solve the Problem
The document should clearly state that the responsibility for improvement lies with the employee.
You are responsible for making improvements in this area. Please come to me for assistance, training needs, or resources that may be necessary in achieving improved and sustained performance.
Outline Expectations for Improvement
It is important to state clear expectations and provide an appropriate amount of time to correct the deficiency. The type of change or improvement being sought should be considered when outlining a time frame. It is helpful to include information on follow-up meetings.
Effective immediately, accurate information must be included on all reports. When compiling data, you must check all resources (for example, prior month’s analysis, accounting spreadsheets). Prior to submitting the report to the management group, you must have the data reviewed by me or, in my absence, our senior analyst. I will meet with you two days prior to the report due dates for this review until I am confident that you have improved in your ability to use all available resources to provide accurate reporting information.
State Consequences of Failure to Improve
As important as it is for the employee to understand the impact of the performance/behavioral problem, it is also critical that the consequences of non-improvement is clear. Clear consequences express the seriousness of the situation and many provide motivation for improvement.
Failure to meet the expectations as outlined in this document many result in further corrective action, up to and including possible termination of employment.
In summary, management usually works with Human Resources to determine when corrective action is necessary and at what level (for example, incident discussion, verbal/written warning, or termination).
However, it is each manager’s responsibility to maintain effective and complete documentation, including performance appraisals that can be used in an employment action. If you have any questions regarding corrective action documentation, please contact ADP-UCS to
speak with a representative.
New Legislation
Iowa
On May 15, 2008, Senate File (SF) 2160 was signed by Governor Culver. The fi le includes provisions regarding employer participation in the initial determination to award benefits. The current law states that if an overpayment is made to a claimant,
benefits shall be recovered, even if the claimant was not at fault for the overpayment. Effective July 1, 2008, SF 2160 amends the law to state that if the employer failed to participate in the initial determination and the overpayment occurred as a result of
a subsequent reversal on appeal, benefits will not be recovered from the claimant.
As a reminder, employers must provide ADP Unemployment Compensation Services (UCS) with all available separation information upon request to avoid claimant overpayments.
To view SF 2160 or for more information, please visit the Iowa Legislature General Assembly Web Site at www.legis.state.ia.us.
Wisconsin
Senate Bill (SB) 431 passed in March 2008, extending indefinitely the provision that penalizes employers for not providing complete information during fact-finding investigations. This provision, originally adopted in December 2005, was due to
expire in June 2008. The law provides that if an employer fails to submit complete and accurate separation information at the time of the initial fact-finding investigation, and the determination is later reversed in favor of the employer, the employer will
still be liable for any benefits paid to the claimant prior to the reversal. The exception is if the employer is found to have good cause for failing to provide the information by the appeal tribunal, the commission or a court of law. Employers must submit all
relevant details upon the initial request in order to avoid unnecessary charges that can result in a higher unemployment tax rate.
SB 431 also increases the minimum and maximum weekly benefit amounts to $54 and $363 respectively for claims filed January 4, 2009, and after.
In addition to the SB 431 extension, effective April 2008, another employer penalty was added to Wisconsin’s unemployment law pertaining to concealment. If an employer aids or abets (or attempts to aid or abet) a claimant in concealing material facts
regarding the claimant’s eligibility, monetary penalties will be assessed against the employer. Depending on the number of determinations of concealment, the penalties increase in severity from $500 to $1500 per incident.
To view this bill or for more information, please visit the Wisconsin State Legislature Web Site at www.legis.state.wi.us.
Unemployment Compensation Services Update is a quarterly update for ADP’s Total Tax clients to address the issues of employee personnel practices, state unemployment tax, and payroll tax filing matters. This publication is distributed with the understanding that the publisher is not engaged in the practice of law. If legal issues arise in the context of your business, independent legal counsel should be consulted. Submit unemployment-related documents, including your company payroll code, company name, and contact telephone number on all correspondence to:
Automatic Data Processing, Inc., Total Tax Department, P.O. Box 6000, San Dimas, California 91773-9060 Hotline Number: (800) 959-6246 For even more information about our products and services, please visit our Web site at www.adp.com.