Do you have financial problems?
dsokyno
7 Posts
Good people,
We removed our Accounting Assistant from her position because she told us she was in financial troubles. She had filed chapter 7 earlier and got into financial troubles afterward. We helped her paid for the new debt but moved her to a different position since she has been with us for over 3 years and a very good worker.
Yesterday, we hired a very competent gal. Everyone loves her. We interviewed about 15 people and did not ask the question "Do you have financial problems?" Could we have asked the applicants this question?
Now, here is the dilemma. I did asked the question this morning and found out that she's in the process of filing chapter 7 for $125000.00 medical bill she incurred through surgery that enable her to walk again.
Knowing, that she was interviewing for an accounting position, she should have volunteer this information? Could I fire her? We do not want anyone with financial troubles handling payables and receivables. We do not have any written policy on this issue. Please help me. I really need your help. Thank you very much, H R Heroes and Heroines.
George
We removed our Accounting Assistant from her position because she told us she was in financial troubles. She had filed chapter 7 earlier and got into financial troubles afterward. We helped her paid for the new debt but moved her to a different position since she has been with us for over 3 years and a very good worker.
Yesterday, we hired a very competent gal. Everyone loves her. We interviewed about 15 people and did not ask the question "Do you have financial problems?" Could we have asked the applicants this question?
Now, here is the dilemma. I did asked the question this morning and found out that she's in the process of filing chapter 7 for $125000.00 medical bill she incurred through surgery that enable her to walk again.
Knowing, that she was interviewing for an accounting position, she should have volunteer this information? Could I fire her? We do not want anyone with financial troubles handling payables and receivables. We do not have any written policy on this issue. Please help me. I really need your help. Thank you very much, H R Heroes and Heroines.
George
Comments
Question is, where do you draw the line? What do you consider stable?
In positions requiring cash/check handling in our company, we condition all hires on the ability to pass a criminal/credit background check. If someone comes back heavily in debt with a history of judgments, writeoffs, etc. we'll take another look at them. This tactic doesn't require you to ask the question, if you're nervous about it. Usually, when I ask if they will submit to a background check they volunteer the information that their credit is less than sterling.
Working on the premise that the applicant will be truthful, what are going to do with the information? Tell them thanks, but no thanks? You have too much debt? See ya?
Perhaps in doing your background checks, you could incorporate a credit report.
Oh, by the way, welcome aboard!
It's amazing to me how many people have forgeries, bad checks, bankruptcies, unpaid student loans, etc. on their records. Putting access to money in their hands would not be a good thing.
We just recently went thru the aggravation and betrayal of a long time employee who stole almost $100,000 from our medical practice because she found a small loophole that was not closed. She was a trusted (10 year) employee and no one ever thought to check in behind her until a routine audit turned up some discrepancies. You can bet we tightened up controls on those individuals we hire into these positions.
edit: Personally, I would not consider incurring a $125,000 medical bill and not being able to repay it a sign of financial irresponsibility - just unfortunate circumstances. Not many of us have $125K lying around.
If you donot take the 2nd one out then the first one has an issue with your company over how she was handled.
PORK
If you can come up with some other good reason, so be it...but you cannot discharge based upon the filing alone.
[url]http://www.hrhero.com/lc/[/url]
dsokyno: Welcome to the Forum! For this employee, I'd suggest looking at her underlying conduct. She didn't waste all her money on gambling or drugs, but on surgery that allowed her to walk. And I can't blame her for not having $125,000 in her bank account.
James Sokolowski
HRhero.com
I would argue that the filing of the bankruptcy and the subsequent dismissal and/or scheduling of payment frequency and amount is a very large step toward stability. The more dangerous scenario is the person that has not filed, but still has all the debts to carry and the financial pressure to make those payments.
Even with all the stabilizing or de-stabilizing factors, the basic question of honesty is not covered by any credit report. This kind of character assessment is usually qualitative, not quantitative.
If they wipe the lsate clean with a chapter 7 and learn to manage their personal finances better, chances are the situation may not resurface. If, on the other hand, they have a bad crack habit coupled with wekkly visits to Vinny the Sports Book then you can rest assured that the situation will happen again.
Gene
We are a little more forgiving on those who've filed due to medical bills because of the costs of that kind of care can be large if you don't have insurance. Bankruptcy can be a good thing for some to help them get their finances under control after unfortunate life circumstances and for others they continue on with the same bad habits and credit card debt, living beyond their means etc...because they haven't really addressed the issue of their poor spending habits. It really varies on the reasoning why they file. Without seeing this new employees credit report - you don't really know what else she may have going on. You might find that she's got more than just medical bills - however I don't know if you can go back and get authorization to run a report now. That might get you into trouble.
One word of advice though - now would be a good time to make sure you have some good internal dual control functions in your accounting area - especially for this position. We've had a rash local business get taken due to bookkeeping fruad - one for a over a million dollars over 10 years because of a lack of a dual control or review function.
Good luck to you!