Question: A member of my staff seems intoxicated on the job at times. Can I confront her without violating the Americans with Disabilities Act (ADA)?

Answer: Yes. Even if it turns out she has a disability protected under the ADA, you can require her to meet performance standards and comply with company policies. However, be cautious when disciplining employees with potential substance abuse problems. As with any situation that poses serious legal risks, you may want to consult an attorney before taking action.

Following are some steps that you could follow:

Document the signs of intoxication, such as slurred speech, glassy eyes, impaired coordination, or breath that smells of alcohol. Make note in writing of any other performance problems, including absenteeism and increased error rates.

If possible, pull her aside and ask her directly, "Are you intoxicated?"

If you have a drug testing policy and can arrange for immediate testing, have her transported to a testing facility. (Many states prohibit testing if employers do not already have a program in place.)

Arrange for a taxi to take her home.

At a time when the employee is coherent, discuss your concerns with her. Focus on job-related issues, such as attendance, performance and adherence to your policies. Avoid guessing about possible medical conditions.

Give her the opportunity to explain the cause of her performance problems and apparent intoxication.

If she says her behavior is due to taking prescription medication, ask her to provide a physician's certification.

If there is clear evidence she has a substance abuse problem or has violated your substance abuse policy, offer her a choice between facing discipline or getting professional help.

If she agrees to rehabilitation, ask her to sign an agreement promising to participate in a treatment program and authorizing counseling representatives to talk with you about her progress and suitability for continued employment. Make it clear that failure to comply with the terms of the agreement will be grounds for immediate termination.

Addressing substance abuse problems is difficult, but allowing employees to work in an impaired state can be even more risky. The best strategy involves setting clear policies on substance abuse, training supervisors to watch for warning signs, providing an effective employee assistance program, and administering discipline carefully and fairly.

HUMAN RESOURCE & BENEFIT BITS

Revised Form 5500

The DOL, IRS and PBGC have released long-awaited proposed revisions to the Form 5500 series that employers are required to file for employee pension, welfare and fringe benefit plans. With the exception of Form 5500-EZ, the revisions change all forms in the 5500 series.

Reporting Employee Moving Expense

The IRS is eliminating Form 4782, Employee Moving Expense Information. Changes in employer reporting to employees also involves simplifying Form W-2, beginning with the 1998 Form W-2, that employees will receive in 1999.

IRS instructions for employers will make clear that qualified moving expenses paid to a third party on behalf of the employee, such as to a moving company, will not be reported on Form W-2. Moving expenses paid directly to an employee will be reported.

HRM Update

LONG TERM CARE INSURANCE HAS EMPLOYERS BUZZING

It sounds almost too good to be true: A benefit many workers desperately want - and it costs employers next to nothing.

Not only that, it's so new most firms don't offer it yet, giving those that act quickly a distinct competitive advantage.

What's this magic bullet? Long term care (LTC) insurance protecting workers - or their parents and even in-laws - against the sky-high cost of nursing home and in-home care.

George Shave, president of the Long Term Care Group cites two key factors that are driving the surge of interest in LTC insurance:

Recent studies show that workers consider this issue more important than saving for retirement.

Tax breaks for employers in the 1996 Health Insurance Portability and Accountability Act (HIPPA), make LTC insurance more affordable.

A voluntary benefit

Employer-sponsored LTC plans are offered as a voluntary benefit, with workers paying all or most of the premiums through payroll deduction, using after-tax dollars.

Programs are usually open to employees and their spouses - as well as their parents and parents-in-law - via separate policies. Eligible family members may enroll without employee participation.

What does LTC insurance cost? Like most individual policies, the earlier you sign up the better. Baby Boomers buying coverage for themselves might pay as much as $1,000 a year for a "Cadillac" plan.

Younger workers could be looking at annual premiums of $300 or less. Either way, when you compare that with $40,000 a year for nursing home care, LTC is a bargain.

Tax breaks spur interest in LTC

Tax incentives in the 1996 HIPPA Act have made LTC more attractive to employers and employees.

Firms can deduct the cost of setting up a program, as well as any portion of premiums they pick up. Around 40% of employers kick in at least part of the premium, according to the Health Insurance Association of America.

What's New in Benefits and Compensation