Get documents about "HARASSMENT JEOPARDY
Document Sample
June
2002
JUNE 18, 2002 BREAKFAST – 7:30 A.M.
CALENDAR OF EVENTS
HARASSMENT JEOPARDY
Wednesday, June 5 moderated by Neil Alexander
EMA Meeting
See page 9 Are you familiar with the new Court decisions affecting your workplace?
__________________
Join us for the June 18th breakfast meeting (7:30 a.m.) for an employment
Tuesday, June 11 law update, primarily in the areas of harassment and discrimination
Board of Directors Meeting litigation, in an entertaining, informative, Jeopardy parody format. There
7:30 a.m at Gallagher & Kennedy will be a review of twenty new cases from the federal courts and U.S.
__________________
Supreme Court, including decisions under the Americans with Disabilities
Wednesday, June 12 Act and Family Medical Leave Act. Recently the Courts have issued
North Valley HR Association many important decisions affecting your day-to-day compliance with
7:30 a.m. Breakfast Meeting federal laws.
__________________
Come and hear an update of new case decisions on:
Tuesday, June 18 ADA
MPHRA Monthly Breakfast Harassment
__________________ FMLA
Tuesday, June 18 The panel will be hosted by Neil Alexander of Littler Mendelson, the
July Newsletter Articles Due largest firm in the country that limits its practice to representing
__________________ management in labor and employment law disputes. Joining him will be
his partner, Patrick Hicks; and Larry Bellar of Larry Bellar and Associates;
Thursday, June 27 and Joanne Stark, an immigration attorney with Sacks Tierney. The topics
ADA Mediation Workshop include harassment, discrimination, famous quotes (to avoid!), the “blame
Info: Ruth Peterson 602/640-5047 game”, and legal compliance for severance agreements and waivers. Play
__________________ alongside our distinguished panel and remember, please phrase you answer
Register for AZSHRM Conference in the form of a question!
See page 3 __________________________
__________________
WHEN Tuesday, June 18 – 7:30 a.m. breakfast
Metro Phoenix HR Association 8:00 – 9:00 a.m. program, 9:00 a.m. new member orientation
P. O. Box 7631 COST $20 for guest with reservation received by noon Fri., June 14
Phoenix, Arizona 85011-7631 $30 for guest with late reservation
602/417-8963 fax 602/285-0120 No charge for members; no reservations needed
www.mphra.org WHERE Marriott Hotel, 1101 N. 44th St., just north of the 202 freeway
from the president MPHRA 2002
100 HR professionals attend
an informational meeting for the North Valley affiliate chapter BOARD OF DIRECTORS
90 HR professionals attend the MPHRA Executive Liaison dinner
102 HR Professionals attend President
the MPHRA Legislative Action Committee’s strategic workshop Deborah Wahl, SPHR
Gallagher & Kennedy
186 HR Professionals attend the May MPHRA membership meeting
602/530-8351
This overwhelming response to recent MPHRA programs and initiatives is
Vice President
indicative of the renewed interest and energy of our association and its members.
At the beginning of the year, I discussed the Board’s priority of maximizing the Connie Wood, SPHR
Arizona State University
value of your membership. With that commitment in mind, we concentrated
480/965-4816
our efforts in identifying relevant program topics and credible expert speakers to
present those programs. Our North Valley expansion initiative is striving to Secretary
meet the needs of many current MPHRA members who live in that area, as well Lenny Sanicola, SPHR
as offer new opportunities to other HR Professionals who have yet to discover WorldatWork
the value of association networking and career development. 480/348-7212
We placed great importance on identifying and developing future association Treasurer
leadership. In June, your Board will host its second annual Succession Social,
Jack Milligan, SPHR
an opportunity to give members information and insight regarding leadership Leathers Milligan & Associates
positions within the association. Any professional member interested in 602/274-0711
chairing a committee or running for a board position, now or in the future,
is encouraged to attend. Details will be forthcoming. Past President
As you can see by our new home page, MPHRA launched a new, more Patricia Berg
contemporary identity with the release of its new logo at the May membership MFS Investment Management
meeting. This logo exemplifies our enthusiasm for the future of the association 602/322-7922
and our optimism, in general, for the HR profession in the years ahead. A big
thank you to our Public Relations Committee – Chair, Vicki Grove – and our Directors
sponsors in the launch – Bernard Hodes Group, Fishel & Bocker HR Associates, Fred Bocker
and Leathers Milligan & Associates. We also wish to recognize our Communi- Fishel & Bocker HR 602/266-5600
cations Committee, Chair Kristyn Olson, and our technology partner, WOW!
HR Communications, for their creative and visionary efforts in developing a Christine Cervantes
valuable and friendly web site. Congratulations to all of You! ASU 480/965-4250
In June, your Board of Directors will conduct a mid-year review. This review Rena Cruse, SPHR
is to evaluate our original 2002 initiatives for relevance, check our progress on Schaller Anderson 602/659-1150
identified projects, and ensure that we are meeting the fiscal requirements
John Guettler, SPHR
established early in the year. If necessary, the Board modifies its annual plan to
HRGroup, LLC 480/753-6188
more appropriately meet the needs of our members and guarantee a balanced
budget at year’s end. We encourage you to contact your Board at any time if Sue Hutchison, SPHR
you have questions or recommendations about MPHRA activities. 480/515-3560
John Perkins, SPHR
Human Resource Partners
Our plans will support MPHRA’s Mission Statement and desired 602/264-7875
image Laura Piel, PHR
Our initiatives will support our plans and serve our member’s needs Renaissance Personnel Group
Our budget will support our initiatives and desired outcomes 602/263-5100
Deborah Wahl
2 MPHRA
We’re raising the bar. Are you ready?
One of the many 2002 Conference features would
include our “HR Champions Workshops.” This four-
hour workshop opportunity is based on SHRM National
keynote speaker David Ulrich’s inspiring book, HR
Champions. It is a stimulating management education
program focused on making strategy happen.
You’ve established yourself as a vital resource within
your organization. At the same time, you’re always
Join us at the Sheraton Conquistador Resort in Tucson
striving to take your abilities and contributions to a
for this exciting event. Whatever your career stage in
higher level. At the Arizona Society for Human
HR, this conference will help you “raise the bar” in
Resource Management (AZSHRM) and Arizona
order to be an even more valued strategic partner for
Healthcare Human Resource Association (AHHRA) we
your organization. There will be an array of
understand that. That’s why our conference on
educational sessions and speakers specifically selected
September 3rd and 4th is “Raising the Bar from
and sequenced to help you add to your unique skills
Practitioner to Partner.”
portfolio. Your horizons will be broadened and
professional potential heightened as you network with Register on line at www.azshrm.org
other top HR professionals. or contact Mysti Anderson at 480/968–6790 x-4311
Professional Recruiting & HR Consulting
QUALITY HR RECRUITING ! !
QUALITY HR CONTRACTING ! !
Company is owned and managed by
former HR Directors who are also leaders in
SHRM Chapter, State Area organizations.
We have a 30 year tradition of successful
HR Recruiting & HR Contracting in the vital
expertise areas of:
RECRUITING / EMPLOYMENT
EMPLOYEE / LABOR RELATIONS
TRAINING / ORGANIZATION DEV.
COMPENSATION / BENEFITS
DIVERSITY / EEO / AAP
SAFETY / SECURITY
Call FRED BOCKER, President & COO at
602/266-5600 or e-mail fbocker@fishelhr.com
MPHRA 3
If You Want To Close Gaps In Performance – Stop Focusing On Results!
by Neil Dempster
For those of you in attendance at the May 21st MPHRA people don’t meet deadlines – something changes!
luncheon, this opening proclamation had the desired What changes is this thing called “work ethic.” Work
effect – it almost caused a corporate aneurism! After ethic can be defined as the level of effort a person sees
making the controversial statement, I scanned the as appropriate for a particular work environment or
audience and was met with many looks of disbelief. situation. If you think otherwise, ask yourself “Why
Why? Because it flies in the face of everything we are did the person show up on time the first day?”
told to focus on . . . and expected to get! Although I Because s/he knew it was right! It was our work
may have said it for “shock value,” it doesn’t change the environment that told this person what to do next!
reality . . . our exclusive focus on results is actually That means our accountability is to start
getting us less results because we are losing sight of the
communicating the Behavioral Expectations we
activities and behaviors which make the difference want through our behaviors, NOT through memo, e-
between mediocrity and peak performance. Remember mail, or policy manual.
. . . good is the enemy of GREAT! Yet how many of
our employees are lulled into a false sense of Second, as a result of previous (current??) manage-
accomplishment simply because they think they are ment practices, measurement systems, and coaching
doing “good enough” or “better than the next guy.” Our feedback models, employees have formed an
organizations will never get to GREAT if we don’t start inappropriate opinion as to what is considered
“behaving” the language of results. The main focus of acceptable performance. So when we communicate
my keynote, “Whiners to Winners”, was to help convey that we need more production, better quality, faster
service, or simply present the dreaded “do more with
the power of Behavioral Expectations and to provide
less” speech, it is no wonder that employees think we
several methods to close gaps in performance. In this
are never satisfied, and we expect more production for
article, I will attempt to offer two additional
the same pay. The easiest way to overcome this
perspectives on this performance imperative.
obstacle is never to let the employee form this opinion
First, let’s discuss the issue around “work ethic.” I often in the first place! One way to deal with this situation
have people tell me value systems have changed – that is to make the first line in every employee’s job
people entering the work force just don’t have a work description: “To be incrementally better tomorrow
ethic any more. But when I ask groups, “Where does than you are today.” and be consistent in supporting
work ethic come from?” typical responses include, “they the initiative. This conveys volumes! Why? Using
learn it at home,” or “it comes from school,” or “it’s all
the Results Formula presented during the keynote
about their upbringing,” reflecting a lack of (Results = Ability x Effort x Systems), if someone is
understanding of how behaviors are learned. Although learning something new every day (Ability), and
there is a certain amount of truth in their responses, the applying it consistently (Effort), better results are the
actual answer to the question is – work ethic comes outcome. It would be difficult to deny the logic in this
from . . . WORK! Let me explain. With very few formula. And since learning never stops, a Behavioral
exceptions, on the first day of a new job people show up
Expectation of continuous improvement becomes
on time, come back from their breaks on time, and do the norm, instead of the “flat-lining” that is more
their work on time – on the first day. It’s the second day typical. An additional benefit of this approach is that
where we see the change start to occur because when the employee will see coaching feedback as
s/he shows up on time and looks around and sees that developmental feedback instead of seeing it as
other people don’t seem to care about coming to work criticism.
on time – something changes! Or when he comes back
from his breaks on time and sees that other people don’t Neil Dempster is a keynote speaker, seminar developer, and
come back on time – something changes! Or when she trainer with Clearview Performance Systems. For copies of his
does her work on time only to find that other handout or the EffortSteps and LEARNlinks® “royalty-free”
worksheets, he can be reached at 480/598-9000 ext. 101 or e-mail
. . . continued, next column him at Neil@ClearviewOnline.com.
4 MPHRA
LEGISLATIVE UPDATE – 2002
by Michele Tyler, Fennemore Craig, P.C.
With the end of the 2002 regular legislative session in Governor’s Council on Workforce Policy. The new
sight, the Arizona legislature is considering a few council would assume the old council’s responsibilities
remaining employment-related bills. The legislation and develop guidelines for criteria to determine the
currently getting the most attention at the capitol annual qualifying wage rate per county so the rate
includes – reflects current economic conditions and local business
SB 1042 - Broadcast Employees Non-compete Clause needs in the county. To receive certain grants and
Since last month’s report, this bill has been further awards, a business must pay employees at least the
amended to prohibit broadcasters from entering into county’s qualifying wage rate. The bill was approved
non-compete agreements with any of their employees. by both the House and Senate and sent to the Governor
This bill was sent to the Governor on May 15, 2002. on May 16, 2002.
SB 1201 – Wages, Immigration Status, National Origin HB 2353 - Arizona Civil Rights Act Revisions As we
The House Ways & Means Committee adopted this reported last month, this strike-everything amendment
strike-everything amendment that would require adds “mental disabilities” to the list of classifications
employers to pay employees wages due regardless of protected by the Arizona Civil Rights Act and prohibits
their immigration status or national origin. Arguably most pre-employment medical examinations and
this restates existing law. Rumor has it this amend- inquiries. It does not, however, enhance the damages
ment may be stripped off in conference committee, but available to a prevailing plaintiff for a violation of the
may reappear as an amendment to another bill. Act, in contrast to prior versions of the bill. Possibly
HB 2265 - Job Training Programs This bill would because a cost to the state General Fund has been
replace the Arizona Job Training Council with the identified, the bill has been in limbo since both Senate
. . . continued, next column caucuses reviewed it on April 17, 2002.
MPHRA 5
MANAGEMENT IN REAL LIFE
by Kevin Herring
Choice. When should employees have it? How much Employees knew that voicing disagreement would
should they have? Within what purview should it be not be tolerated. But unspoken consensus was
granted? The questions themselves rather infer that declared overwhelmingly through inaction as “no!”
employees only have choice when someone else allows it
If end-users had been asked, they could have
– as if in the absence of permission, no choice exists.
responded verbally the same as they did non-
But is this true? Do employees only have choice when
verbally. The outcomes would have been the same
supervisors and managers say they do?
in either instance – no implementation. The only
In a client meeting, I once heard a staff manager difference is that by not asking, the organization
complain about the lack of success with all of the spent significant resources, including time and
programs “rolled out” to the organization during the money, trying to force implementation that was
previous several months. He stated that despite the doomed from the start.
apparent support of operations managers and meetings to
explain the merits of each program, the programs failed To be sure, offering choice can be risky from the
miserably. standpoint of relinquishing control. But sometimes
we kid ourselves into believing that when others
When I asked how many of those impacted by the nod their heads affirmatively we have control and
programs were involved in the decisions to implement commitment. We drift off into some management
them, I was told that the operations managers were fantasy land where we dictate and people respond,
expected to return to their respective operations and like pushing buttons on a machine. This truly is
“sell” the programs to the rest of the work force. This delusional thinking. Even in the most autocratic
staff manager said that getting “buy-in” should not have environments, such as in the military, we know that
been a problem since the managers were all “on board.” soldiers exercise choice sometimes at the literal
I then made a suggestion that I’m sure was taken, at least expense of their leaders.
initially, as management school heresy. I asked the staff So, do employees have choice? Maybe we are
manager to consider what would have happened had he asking the wrong question. Perhaps the question
held a meeting with end-users prior to implementation ought to be, “Do supervisors and managers have
and asked them whether or not the program should be choice?” Or, put another way, “Whose driving this
implemented. His response was predictable, “What? ship anyway?”
Give them a choice? What if they choose ‘no’?”
The fact of the matter is they had already chosen “no.”
Kevin Herring is President of Tucson-based Ascent Manage-
They just hadn’t verbalized it. The staff manager ment Consulting, committed to creating management, culture,
assumed that because operations managers were organization, and governance systems that enable personal
compliant that they and their staff were committed. fulfillment and organization effectiveness. For information
contact Kevin at 520/742-7300 or KevinH@AscentMgt.com.
. . . continued, next column
6 MPHRA
SEVEN WAYS HR CAN LEAD BUSINESS TO A BETTER FUTURE
by Martha I. Finney
The events of the last year have changed all our lives Mature companies are cutting huge numbers of
forever. And they have changed the HR profession employees, and I’m worried they may be losing
forever. While this country has experienced unspeakable valuable talent that could otherwise help them build
tragedy, fear, and scandal before, never before have so their future.”
many events impacted American business and the Understand and promote the intrinsic value of
economy so profoundly as they have in recent months. your company. No business will prosper unless its
And never before have they impacted HR so directly. purpose adds value to the world in a meaningful way.
From the economy, to September 11, to Enron, every People are not your company’s most valuable asset,
terrible headline has gone to the heart of humanity. And after all. Their passion is. Curtis Carlson, president
that means it goes straight to the heart of the human of SRI International, said this about the power of
resources department. intrinsic motivation: “It’s when you create an organi-
In an effort to gain some understanding of how to move zation that taps into that need that you find people
forward in unstable times, I interviewed some of the who are incredibly resilient. They’ll work incredible
nation’s top business thinkers for my new book, In the hours. They’ll suffer a hundred defeats because they
Face of Uncertainty. Every one of them said the future of see the opportunity to make a significant impact.”
their business depends on the sustained passion, optimism, Forget the quick-money dream of the so-called
and mission focus that their people bring to work every
New Economy. Joe Galli, president and CEO of
day. As a leader in one of the most profoundly affected
Newell Rubbermaid, had this to say: “The worst thing
functions in your company, you can let other people
that can happen to our economic environment is the
struggle with the answer to the question, “What do we do
notion of easy money. The best thing is the
now?” and then tell you what to do. Or, you can use the
restoration of a values system that says that effort will
following insights and advice and take the lead yourself
be rewarded in the long term. We have to get back to
— dynamically driving your company out of these
reading, studying, applying ourselves...and trying to
uncertain times and toward a brighter, more promising
become the best we can be. When we get back to that,
future
we can perpetuate a great society.”
Here’s how to make this time HR’s shining hour:
Remember that being a learning organization
Take a global, long view perspective. Marilyn Carlson doesn’t stop at merely acquiring new knowledge.
Nelson, Chairman and CEO, Carlson Companies, Inc. New data reflects a changing world. And it’s the
said, “America and its businesses are so young compared changing world itself that will drive the future. Relish
with others in the world. We are only now learning to that change. Theodore G. Shackley, Assoc. Deputy
take the long view and act accordingly. It is a new role for Director of Operations (retired), Central Intelligence
us, but one we must play if we are to be truly understood Agency, said: “Stay educated and remain receptive to
and embraced in the long term by other countries, outside ideas and information. Don’t get locked into
companies, and cultures.” the thought that the way things are is the way things
Give leadership a chance throughout the ranks. Steve will continue to be.”
Harrison, president of Lee Hecht Harrison, said, “Great Be a student of resilience. Resilience will get you
leadership comes from entirely unexpected places. It’s through everything and anything the business world
understatement; it’s dignity; it’s service; it’s selflessness. throws at you. Managing Transitions author William
Business has a lot to learn from the average American.” Bridges said: “Beyond whatever doubts you have,
Focus your perspective on the middle future. If you you must have an underlying faith that you can start
respond only to the immediate emergencies, you risk all over...that you can bring it all to a close and then
losing mission-critical talent. James Madden, chairman, begin again.”
CEO, and president of Exult, said: “Let’s not make Martha I. Finney is a management consultant, speaker, and
decisions today that we’re going to regret tomorrow. author of In the Face of Uncertainty: 25 Top Leaders Speak Out
on Challenge, Change and the Future of American Business.
. . . continued, next column Contact her at Martha@MarthaFinney.com.
MPHRA 7
WHAT DO VOLUNTEERS HAVE TO DO
MEET OUR NEW MEMBERS WITH CONFERENCES? EVERYTHING!
by Kristie Lindeman, SPHR
Darla Brassel is responsible for the HR functions at the Only with the help of volunteers can there be an
Edward Jones Regional Headquarters in Tempe. She Arizona State SHRM Conference. The chair people
joined the financial services firm over four years ago after and committee members are all volunteers who give
graduating with a Bachelor’s degree in HR Management. their time so year after year the state SHRM con-
ference is a worthwhile event for all HR professionals.
Jennifer Hartranft, PHR, is the staffing manager at This year we again ask for volunteers to help with the
Spectrum Astro, a satellite manufacturing company with State SHRM Conference in Tucson in September. If
500 employees. She is a graduate of Rutgers University you think giving your time to help stuff packets, work
and is presently studying for her M.Ed. in instructional in the bookstore, or be a guide sounds like fun, contact
technology at ASU. CFillmore@mindspring.com for more details.
Ellen Jacoby, PHR, is the HR Manager responsible for
employee relations and recruiting for Orthopedic Device
Manufacturer. Ellen is a member of SHRM.
Giancarlo Picorelli is the HR Manager for Porcher/
American Standard. It manufactures bathroom fixtures.
Giancarlo was a member of the Central Florida HR
Association before relocating to Chandler.
Diane Scroggin is the Director of Corporate Affairs and
Human Resources for SOHO Resource Group, Inc., an
emerging benefits management and services company for
the self-employed.
Christopher Sierra, PHR, has over nine years of HR
experience and is currently the HR Manager for Payment
Systems for Credit Unions. His Bachelors of Business
Administration degree is from the University of New
Mexico.
Mary Supplee is the Corporate HR Manager of Howard
S. Wright Construction Co., where she oversees all HR
functions for six offices in four states. She has been in
HR for 15 years and is enrolled in the HR Management
program at the University of Phoenix.
8 MPHRA
ATTENTION: BENEFITS PROFESSIONALS JUNE 5 – EMA MEETING
submitted by Lenny Sanicola, SPHR by Brian Eastwood
"Employer Practices in Providing Employee Health
Benefits and the Employer Role in Covering More of
the Uninsured" will be held on Thursday, June 13, from
8:30 a.m. until noon in room 200 at St. Luke's Health
Initiatives, 2375 East Camelback Road, Phoenix.
This meeting is part of national research conducted by
the non-profit Employee Benefit Research Institute Five Shoes Waiting to Drop on Arizona: a
(EBRI) to explore employee and community health look at the trends impacting HR & business
issues. Phoenix-area employers and employee benefits
Please join us for the June breakfast meeting and be
professionals are invited to discuss ideas for expanding
treated to a dynamic presentation by Mary Jo Waits,
the number of Americans that have health insurance.
Associate Director of the Morrison Institute for Public
If interested in participating or receiving information, Policy. Ms. Waits has received much acclaim for her
contact: Karl Polzer, polzer@ebri.org or Ray Werntz, presentation of the present trends that are well under-
werntz@ebri.org EBRI Consumer Health Educ.Council. way in Arizona, but that we can’t quite see yet. These
trends could overwhelm us if we don’t spot them now
and use our knowledge to plot a positive course for
the future. Ms. Waits deals with issues such as
availability of workforce talent, education, and issues
of vital importance to business in Arizona.
The Morrison Institute is the “think tank” of the
nation’s fourth largest university – ASU. Ms. Waits
oversees the Institute’s project development, publica-
tions, research, and analysis. She is principal author
of “Five Shoes Waiting to Drop,” a publication in the
Institute’s Arizona Policy Choices series.
Ms. Waits is an executive board member of the
Governor’s Strategic Partnership for Economic
Development (GSPED) and served four years on the
North American Development Bank’s Advisory
Board. The Business Journal repeatedly selects Ms.
Waits for its list of “Most Influential People” in the
Phoenix Metropolitan Region. Her Master’s degree in
public administration is from USC.
Date Wednesday, June 5, 2002
Time 7:30 to 9:30 a.m.
Place 200 E. Van Buren St., 4th Floor
Parking Validated parking for the lot off 2nd St., N.
of building. Bring ticket for validation.
Cost $15 SHRM/EMA Member • $20 EMA
Member • $25 Non-Member
RSVP Register online at www.ema-az.org or
e-mail jennifer.ellis@rada-adv.com
MPHRA 9
ARIZONA’S CONTRACEPTIVE EQUITY ACT ARISES FROM VIAGRA PRESCRIPTIONS
by Neil M. Alexander and Peter C. Prynkiewicz
A survey by the Arizona Family Planning Counsel in share the entity’s religious tenets, and 3) is a non-
2000 found that 62 percent of Arizonans’ health care profit organization as described in section
plans did not cover contraceptives to the same extent as 6033(a)(2)(A) of the Internal Revenue Code of 1986,
other prescriptions. There have been several attempts to as amended. Religious employers whose religious
address this situation at the state and federal level. For tenets prohibit the use of prescribed contraceptive
example, approximately 17 states have passed methods may require that the entity providing health
legislation specifically outlawing any discrimination in insurance coverage for its employees provide a
health plans. Supporters of the legislation “got a rise” contract that does not include coverage for all federal
out of the fact that these plans covered prescription food and drug administration approved contraceptive
Viagra use, but not prescription contraceptives for methods. To qualify for the exemption, a religious
women. Insurance plans that cover federal employees employer must submit a written affidavit to the health
are already legally required to cover contraceptives on insurance company stating that it is a religious
an equal basis to other prescriptions. Support is also employer. Upon receiving the affidavit, the company
growing for the federal Equity in Prescription Insurance shall issue a health insurance contract to the religious
and Contraceptive Coverage Act which would require employer that excludes coverage of prescription
all insurance plans to cover contraceptives equally in the contraceptive methods.
private market It is unlikely that hospitals, health plans, and other
On April 21, 2002, Governor Hull signed Arizona’s privately run companies that have historically been
Contraceptive Equity Act (the “Act”) into law. Thus, funded by religious organizations (many of which
Arizona has become the latest state to address this issue have excluded contraceptive coverage) will meet the
through legislation. The Act does not require insurance exemption. Competent counsel should be consulted
companies to provide any specific coverage and does on a case-by-case basis.
not address the extent or level of coverage that an Any religious employer that invokes the exemption
insurer or employer must provide. It does, however, must provide prospective subscribers with written
require that insurance plans that provide coverage for notice that the religious employer refuses to cover all
prescription drugs also provide coverage for federal food and drug administration approved
contraceptive prescriptions on the same basis. In other contraceptive methods for religious reasons. The
words, if a group insurance plan covers prescription exemption does not exclude coverage for prescription
drugs, it must also cover any prescribed drug or device contraceptive methods that a health care provider
that the United States Food and Drug Administration orders for medical indications other than to prevent an
has approved as a contraceptive. Similarly, if an unintended pregnancy.
insurance contract provides coverage for outpatient
health care services, the contract must also provide The Act applies to all contracts, policies, and
coverage for outpatient contraceptive services. The Act evidences of coverage issued or renewed from and
defines outpatient contraceptive services as “consulta- after December 31, 2002. Employers should consult
tions, examinations, procedures and medical services their group health plan brokers to ensure they are in
provided on an outpatient basis and related to the use of compliance. Penalties for non-compliance include
United States Food and Drug Prescription Contraceptive suspension or revocation of an insurer’s certificate of
methods to prevent unintended pregnancies.” The Act authority, which would prevent it from conducting
only applies to group health insurance coverage; it further business in Arizona. Civil penalties in lieu of,
specifically exempts contracts issued to individuals on a or in addition to, suspension or revocation include
non-group basis. fines of up to $1,000 for each unintentional violation
(not to exceed $10,000 in any six-month period), and
The Act includes an exemption for a “religious
up to $5,000 for intentional violations (not to exceed
employer.” A religious employer is an entity that 1)
$50,000 in any six-month period).
primarily employs persons who share the religious
tenets of the entity, 2) primarily serves persons who Neil M. Alexander is a Shareholder with Littler Mendelson in
Phoenix. Peter Prynkiewicz is an Associate. If you would like
. . . continued, next column additional information, call Neil or Peter at 602/474-3600.
10 MPHRA
