Reprinted from Dairy Today: Labor Matters, June 13,
2011.
With employment litigation now the fastest-growing area of
U.S. lawsuits, turning a blind eye to human resource principles
opens your dairy to the threat of costly legal action.
One of the very best traits of the dairy industry is the
fact that the industry is dominated by family farms. While the
industry takes justifiable pride in the families that populate it,
there are times when this strength can become a weakness. For
example, when the term "human resources" is mentioned,
many dairymen immediately react with the thought that human
resources is a tool for big business, not the family farmer.
Employment litigation remains the fastest-growing area of
litigation in the U.S., and turning a blind eye to human resource
principles is to ignore the threat that such litigation poses to
the family farm. A single lawsuit, by the time it is done, can cost
a dairy hundreds of thousands of dollars. In years past, such a
risk could be tolerated as part of the general risks of doing
business, but in today's fragile dairy economy, that risk could
spell disaster for farm families.
The degree of human resource management that is needed depends
greatly upon the size and circumstances of the dairy. A larger
operation might need to dedicate a full-time employee to manage
human resource issues, while a smaller farm might be fine simply
assigning responsibility to a family member or employee in addition
to other duties. Regardless of how the particular dairy approaches
human resource management, there are essential tools that must be
in place. Some key ones are:
1. Employee Handbooks. An employee handbook is a
critical tool to protecting the farm from potential claims.
Handbooks make established rules and procedures clear and
undeniable, and establish the dairy's expectations for
employees. If a dairy is accused of discrimination, it is
incredibly valuable to point to a handbook to find the rule that
was the reason for the termination. Too often, even dairy producers
who recognize the importance of handbooks make the mistake of using
generic templates or handbooks created for other businesses as a
basis for a dairy handbook. But agriculture is a unique industry,
and dairy is unique with in agriculture. For a handbook to be
effective, it must be tailored to the policies and practices of the
dairy.
2. Recordkeeping. Like it or not, modern society
expects businesses to have records. Dairies should have a personnel
file on each worker with the employee's personal information,
I-9 form, W-4 form, and other documents related to the employee.
I-9 forms should be separately stored so that they can be easily
produced in the event of an audit. All dairies should have time
clocks and detailed payroll records, especially in California,
where wage and hour lawsuits against dairies are an epidemic. If
employees break the rules or perform poorly, the action must be
documented in the personnel file. Such records can provide the
dairy with the tools to defend itself if accused of discrimination
or other wrongdoing. The records also need to be kept for time
periods dictated by law.
3. Communication. Dairies are often challenged by
the fact that the employees speak predominantly Spanish, while
owners often speak only English. It is critical to have an
effective means to communicate with workers, and to keep notes to
document conversations. Lawsuits and union organizing may end up
being about money, but they almost always start with anger and
bitterness. One labor dispute started at a California dairy because
an employee was upset at being moved from an outside position to a
milking position without explanation. With no outlet to voice his
complaint, the worker became increasingly bitter, until he
ultimately led the charge in a multi-employee lawsuit against the
dairy. It is critical to have a clearly explained process for
employees to raise their concerns in a way that will ensure that
their concerns are heard and addressed. This does not mean giving
in to every demand, but it does mean sending the message that the
employer is listening, and will explain why the dairy is doing what
it is doing. Efforts to resolve employee grievances must be
documented so that the dairy can prove the actual chain of events
if it has to in litigation.
While not every family farm needs a dedicated human resource
department, every farm needs to address human resource management
in some manner. Too many dairies are caught up in difficult
litigation without the tools to defend themselves. While there is
no way to absolutely prevent accusations from being made, effective
human resource management will reduce the risk of litigation, and
will put the dairy in a position of strength to defend itself if
litigation arises. Family farms remain a treasure in the industry,
one that deserves to be protected through implementation of human
resource tools.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
