CPA Practice Advisor - 24

FEATURE

CPA Firms and the #MeToo Era
By Joseph Wolfe and Lindsey Pilla

FEDERAL, STATE AND, in many instances, local laws prohibit
sexual harassment and employment discrimination. These
laws hold employers responsible for maintaining a nondiscriminatory workplace free of harassment, intimidation
and retaliation. In 2006, the "Me Too" movement was
founded by Tamara Burke to aid women who have been
victims of sexual violence. This movement shed a light on
many high-profile accusations against men and women in
politics, business and entertainment. Increasingly, this has
raised questions in the minds of business owners about
how to maintain a non-discriminatory workplace, which is
further complicated by the extensive use of both personal
and business technology by firm personnel.
UNIQUE FACTORS
IMPACTING CPA FIRMS
Accounting firms increasingly operate virtually, with employees working from home, client locations, and
firm offices, which may be in different cities, counties, states, and even
countries. This presents unique
challenges regarding compliance
with employment discrimination
laws. "Firms need to have robust
policies and training, and a simple
process for employees to inform
human resource personnel about
potential problems, without fear of
retaliation. Prompt escalation and
investigation can prevent bigger
problems later", says Ana Shields, a
principal at the law firm of Jackson
Lewis who practices exclusively in
employment law. "Training should
be conducted for all employees,
including remote workers."
Some firms are actively engaged
in merging or acquiring other
professional service firms. Both
employment practices and the "tone
at the top" regarding maintenance

OCTOBER 2019 ■

of a non-discriminatory and safe
workplace can vary substantially
from one firm to the next. Qualified
and experienced human resource
professionals should participate in
due diligence on these matters prior
to initiating negotiations to merge
or acquire another practice. "Due
diligence is critical," said Shields.
"Be strategic about the information
requested. Ask about both pending
claims and complaints as well as
prior claims that were resolved. Is
the alleged harasser or complainant still working there? Was the
alleged harasser or complainant a
member of management? How do
they conduct investigations? Review
their policies and get details on
harassment prevention training."
Consult with an experienced
employment law attorney about
obtaining and reviewing this
information. While the ability to
investigate these matters may
be limited by law, confidentiality
obligations and circumstances
surrounding negotiations, such con-

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sultation will provide
important background
information relevant
to mitigating risks and
managing insurance
costs, as well as post -
transaction integration
of firm personnel.
Accounting firms
that provide outsourced
tax and accounting
services also need to
conduct due diligence
before placing their
employees in a client
work environment, and
promptly investigate
any complaints about
harassment, intimidation, or bullying. Firms
that lease employees
to other businesses
also need to conduct
training and maintain
adequate controls over these
operations to avoid running afoul
of employment discrimination laws.
Several harassment lawsuits filed
by the EEOC in 2018 involved staffing companies. "Ensure that your
staff understands that no matter
how big the client is, your firm as
an organization will not tolerate
harassment or discrimination," said
Shields. "There may be resistance
to reporting harassment at a major
client; set the appropriate 'tone at
the top,' and if there is a complaint,
respond in a meaningful way."

IN CONCLUSION
Maintaining a non-discriminatory
workplace requires ongoing effort.
Consult with qualified human
resource personnel to monitor
and update training, policies and
procedures for compliance with
applicable law, and to prevent both
sexual harassment and other types

of employment discrimination. It is
also important to set the right "tone
at the top" through management
words and actions, and to provide
employees with the training and
resources needed to identify inappropriate behaviors and report
them to human resource personnel
for investigation and response. In
the event a complaint is received,
consult with a qualified employment practices attorney prior to
taking any disciplinary action,
and promptly report any claims to
the firm's employment practices
liability insurer. ■
Joseph Wolfe (joseph.wolfe@aon.com) is a
risk management consultant and Lindsey
Pilla (lindsey.pilla@aon.com) is a senior
account specialist and broker at Aon Affinity, the endorsed provider of the American
Institute of Certified Public Accountants
(AICPA) Professional Liability Insurance
Program since 1967. For more information
call 215.773.4653 or visit cpai.com.

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