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Developing Zero Tolerance Policies for Your Dealership

Developing Zero Tolerance Policies for Your Dealership

There are some things that we just cannot tolerate in the workplace.  They just mean trouble!


Sexual Harassment, Misuse of Computers, Visiting Inappropriate Websites, Distracted Driving, Unauthorized Weapons into the Workplace, the list goes on.


When injuries, whether physical or mental, result from these issues, we run the risk of adverse jury awards,  potentially uninsured jury awards.


The allegations from Plaintiff’s counsel would be directed at Management Style.  ‘’This is common and accepted activity”…they would argue.  The intent would be to seek the maximum in damages for their client, both in compensatory and punitive awards.  And, with voice recorders and cameras on cell phones, wrongful acts are easily documented.


Problem is, in most states, Punitive Damages are not covered by insurance.

This leaves the Dealership with coverage only for compensatory damages.


The key is to adapt a zero tolerance policy for all areas where punitive damages could be awarded and irresponsible management style alleged.  This means an end to leniency with employees and a hard line in the workplace.  The ‘’good ole days’’ with the ‘’good ole boys’’ are over.  Has to be!


Have your Counsel perform an immediate review of your Employee Handbook.  Make the necessary adjustments and announce them in the workplace, both in electronic, and written form on the bulletin boards.  Have your employees confirm receipt of the policies so everyone understands.


If the day ever comes that you have to face allegations in a courtroom, you need to be able to prove to all, without a doubt, that Management prohibits certain activities.  Zero tolerance policies not only make a statement to employees, they have an immediate impact on claims.  Most importantly, they prevent potentially uninsured jury awards.


Watch for our next info blast…The F & I Beast!


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