By Susan M. Corcoran, Principal (914-872-6871) with Jackson Lewis P.C; Kristin L. Bauer, Principal (214-520-2400) with Jackson Lewis P.C. 

 

At the onset of COVID-19 in 2020, the Wall Street Journal reported that over a three-month period, there was a deluge of tips, complaints, and possible referrals to the U.S. Securities and Exchange Commission (SEC). More recently, the SEC has reported record whistleblower awards. Although the extent to which remote work has contributed to these statistics can be debated, these trends and the continued popularity of remote work create an opportunity for employers to reassess internal reporting processes and their compliance culture. 

Employers should have effective and accessible reporting mechanisms, including anonymous reporting, so that remote employees can report concerns of any kind.  

Factors to consider include: 

• Adequate staffing and resources to handle complaints received in a prompt and adequate manner, including documentation of the complaint, response, and closure. 

• Ensuring follow-up with complaining employees to make sure reporters understand their concerns have been reviewed and addressed. 

• Reviewing codes of conduct to ensure consideration of the remote work environment. 

• Top-down messaging about important compliance values. 

• Reviewing business practices to evaluate compliance gaps and opportunities for misconduct created by remote and hybrid work. 

• Ensuring investigations can be conducted virtually as needed with appropriate privacy and confidentiality safeguards in place. 

Employers should also create a culture of trust so individuals will report concerns. A low volume of internal reporting may indicate a lack of trust, while a high volume may indicate a healthier compliance culture. 

Creating a culture of trust may be a particular challenge for some companies as they re-engage with workers who have been virtual for two years since the onset of the pandemic. Strategies include: 

• Providing more information to employees about key company events, including financial condition, to create a greater sense of security in, or awareness, of their positions. Transparency breeds trust. 

• Ensuring that remote employees are not feeling intimidated. Communication styles have changed. Employees may feel uncomfortable, for example, when managers hold one-sided meetings (i.e. only the employee is on camera and/or the frequency of employee/manager communications may have changed). Tweaks in management style in this “new” environment may be required to build and maintain trust. 

In sum, a prudent employer keeps a pulse on the challenges of the remote work environment by reassessing the effectiveness of its reporting process and evaluating its culture. A smart employer then takes positive action.  

If you would like to learn more about how to safely outsource compliance and HR functions, contact us. 

 

JACKSON LEWIS P.C. (“FIRM”) PROVIDES THE INFORMATION IN THIS POST FOR GENERAL INFORMATIONAL PURPOSES ONLY. THIS POST SHOULD NOT BE RELIED UPON OR REGARDED AS, LEGAL ADVICE. NO ONE ACCESSING OR REVIEWING THIS POST, WHETHER OR NOT A CURRENT CLIENT OF THE FIRM, SHOULD ACT OR REFRAIN FROM ACTING ON THE BASIS OF SUCH CONTENT OR INFORMATION, WITHOUT FIRST CONSULTING WITH AND ENGAGING A QUALIFIED, LICENSED ATTORNEY, AUTHORIZED TO PRACTICE LAW IN SUCH PERSON’S PARTICULAR STATE, CONCERNING THE PARTICULAR FACTS AND CIRCUMSTANCES OF THE MATTER AT ISSUE. THE POST MAY NOT REFLECT CURRENT LEGAL DEVELOPMENTS, OR LAWS OR RULES THAT MAY APPLY IN PARTICULAR JURISDICTIONS. THE FIRM AND ITS LAWYERS EXPRESSLY DISCLAIM ALL LIABILITY IN CONNECTION WITH ACTIONS TAKEN OR NOT TAKEN BASED ON ANY OR ALL OF THE CONTENTS OR INFORMATION ACCESSIBLE THROUGH THIS SITE. ANY INFORMATION ABOUT PRIOR RESULTS ATTAINED BY THE FIRM OR ITS LAWYERS IS NOT A GUARANTEE OR WARRANTY THAT A SIMILAR OUTCOME WILL BE ACHIEVED. 

  

THE FIRM IS NOT RESPONSIBLE FOR THE CONTENT, OPERATION, LINKS OR TRANSMISSIONS, OR ANY INFORMATION PROVIDED ON ANY OTHER PART OF ASURE SOFTWARE, INC.’S WEBSITE OR ANY THIRD-PARTY WEBSITE WHICH MAY BE ACCESSED BY A LINK FROM THIS WEBSITE. 

NOTHING PROVIDED BY THE FIRM IS INTENDED TO FORM, AND WILL NOT CREATE, AN ATTORNEY-CLIENT RELATIONSHIP.  

  

THIS POST MAY BE CONSIDERED ATTORNEY ADVERTISING UNDER THE RULES OF SOME STATES. THE HIRING OF AN ATTORNEY IS AN IMPORTANT DECISION THAT SHOULD NOT BE BASED SOLELY UPON ADVERTISEMENTS. 

  

STATEMENT IN COMPLIANCE WITH TEXAS RULES OF PROFESSIONAL CONDUCT: UNLESS OTHERWISE INDICATED IN INDIVIDUAL ATTORNEY BIOGRAPHIES, LAWYERS RESIDENT IN THE FIRM’S VARIOUS OFFICES ARE NOT CERTIFIED BY THE TEXAS BOARD OF LEGAL SPECIALIZATION.