Why Your Business Needs an EAP
Nov 23, 2022
Why Your Business Needs an EAP

Employee Assistance Programs (EAP) are increasing in popularity, and can be an important tool for your business.  Simco has an EAP available to offer your employees. 


Employee productivity is a crucial component to the success of any business. These days, we’ve watched employees become overwhelmed by personal or behavioral problems which inhibit them to perform at their best. An increase in stress can lead to higher health risks and expensive insurance claims. Likewise, psychological problems, substance abuse, financial stress and more can all lead to lower productivity and focus at work, increased absenteeism, and higher health care costs. An EAP can address these issues and help employees tend to their personal needs, resulting in you having healthier, happier and a more productive team.


What is an EAP?

EAPs traditionally have assisted workers with issues like alcohol or substance abuse; however, most now cover a broad range of issues such as child or elder care, relationship challenges, financial or legal problems, wellness matters and traumatic events like workplace violence. An EAP is an employer-sponsored program that offers services or referrals to help employees deal with a variety of personal issues. All EAP’s are different, but common issues addressed are:


  • Alcohol or substance abuse
  • Divorce or marital problems
  • Stress
  • Crisis intervention
  • Childcare or eldercare
  • Eating disorders
  • Gambling addiction
  • Psychological or psychiatric challenges
  • Financial or legal issues
  • Consultation services and training for managers regarding employee performance

Why Offer an EAP?

When employees are distracted by stressful personal situations, they can’t focus on work, and you’ll likely see them call in absent more. Thus, their health may suffer and produce higher medical costs. Of course, no employer wants these circumstances, but it is costly to recruit and train a replacement for the struggling employee, especially if that individual has the potential to once again be a great asset to the company.


A better solution is to offer your employees confidential assistance in handling their personal issues. EAP’s help improve their situations and get them back on track to being a productive employee for the company. EAP’s can also help attract and retain great employees, lower health care and disability claims costs, increase productivity and morale, and lower absenteeism.


Government contractors or employers receiving federal grants are required to maintain a drug-free workplace. An EAP can be a part of fulfilling that requirement by offering a drug-free component inclusive of education, awareness, testing, and counseling.


Tell Your Employees About It

Once you have an EAP set up, you should distribute a policy statement to your employees. This should communicate the services offered, how to get those services, an assurance that the program won’t endanger their jobs or reputations, a guarantee of confidentiality and any exceptions to the confidentiality agreement and that the EAP services are usually made available not only to the employee but also to the employee's spouse, children and non-marital partner living in the same household as the employee.


Ready to offer your employees an EAP?

Reach out to us at Simco, we have an EAP not just for our employees, but for your employees too!  Our Sim "Co-Pilot" flyer is available to view here!

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11 May, 2024
On April 29, 2024, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) published Field Assistance Bulletin (FAB) No. 2024-1 on the use of artificial intelligence (AI) in the workplace. The FAB follows a statement released by the White House announcing key AI-related actions following President Joe Biden’s executive order issued on Oct. 30, 2023, on establishing standards for AI safety and security. Guidance on AI-related Wage and Hour Risks Employers are increasingly using AI tools to generate timecards, set schedules, monitor performance, track employee hours and process payroll. As such, the FAB highlights certain compliance risks under the Fair Labor Standards Act (FLSA) for employers using these tools. These risks include: Tracking employee work time; Monitoring employee break and waiting time; Using location-based monitoring for individuals performing work at multiple geographic locations; Calculating employees’ regular rate of pay and overtime compensation; and Violating the FLSA’s antiretaliation provisions To aid employers in addressing these compliance risks, the WHD identifies recommended practices, including exercising proper human oversight, to help ensure that AI systems and tools do not violate the FLSA. Additional AI-related Guidance In addition to addressing FLSA compliance risks, the FAB also examines certain AI-related risks that may arise under other laws, including the Family and Medical Leave Act (FMLA), the Providing Urgent Protections for Nursing Mothers Act (PUMP Act) and the Employee Polygraph Protection Act (EPPA). For example, using AI tools to administer FMLA leave can create potential risks for violating the law’s certification requirements when determining whether an employee’s leave is FMLA-qualifying. Employer Action Items While FABs are not necessarily legally binding, they offer insight into how the DOL interprets laws it enforces and how agency officers will analyze workplace conditions and circumstances to enforce compliance.  Using AI systems for scheduling, timekeeping and calculating rates of pay and overtime may increase an employer’s risk under the FLSA. Therefore, employers should ensure that their AI systems and tools comply with all federal laws and regulations by examining potential legal and business risks associated with AI, implementing AI usage policies and establishing internal best practices.
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