Legal Issues
Updating your organization’s HR policies is crucial to following labor laws
and regulations. In addition to accruing
fines and fees from the government,
your outdated policies could drag your
association into a costly lawsuit that
will divert time and resources away from
your members.
“The insurance companies that
provide nonprofit organizations with
Directors and Officers liability insurance
tell us that year after year, the most
commonly filed claims under organiza-
tions’ D&O policies are claims filed by
employees and former employees,” says
Jennifer Chandler, vice president and
director of network support and knowl-
edge transfer at the National Council
of Nonprofits. “These claims can be
disastrous — or at least a huge drain
on resources and a distraction from the
mission — for an organization that is not
following the law. Employers with out-of-
date policies run the risk that they are
not in compliance with local, state or
federal regulations.”
According to Leslie Muir, executive
vice president of human resources at
SmithBucklin, making sure your HR
policies meet legal standards isn’t just
good risk management; it’s also good
management, and can therefore make
a huge difference in your organization’s
finances.
