Does anyone have a policy addressing employee fiscal responsibility, ie: bankruptcy, obtaining payday loans, etc. that they would be willing to share?

We have a policy that addresses employee overdrafts but that is as far as it goes and we are starting to think that something addressing some of the other things listed above would be a pro-active move.

Thanks for any help!

Be VERY careful in the area of bankruptcies. Firing someone for this reason can potentially cause you a lot of problems.

We are not planning on firing anyone for a bankruptcy, we would just like to have it addressed in a policy that employees must conduct their financial affairs in a manner in which a "dark cloud" per say is not cast upon the bank which would include filing bankruptcy, writing bad checks, payday loans which cannot be collected upon, etc.

I'm just looking for the correct verbiage to put in a policy of this sort.

What actions are you going to take when you notice something? Having a statement that employees must conduct their financial affairs to prevent a "dark cloud" is really a meaningless statement unless you are going to institute fair and unbiased corrective actions. Retaliatory employment actions against someone that has filed bankruptcy is illegal. Even a statement such as you are contemplating may be judged discriminatory. I would recommend that you consult with an employment attorney regarding the development of your policy. Also, if you are pulling credit reports, it is a good idea for an employment attorney to review your program to ensure that you have all your bases covered.

I guess that's what I'm looking for....what actions (if any)other instituions take in the event of poor financial management.

I have to believe that there is some type of action...not firing...an institution can implement.

We do not have any situation with any employee at this time but we do know there have been other institions in the area that have had several employees declare bankruptcy...it's posted in our local paper....this is a small town and everyone knows everybody. I have to say that if I were a customer placing my money and trust in an instituion and it's employees I would definatley think about moving my accounts if I knew employees at my bank couldn't even seem to manage their own funds.

Well I just looked again and I guess my post got cut off.

Basically our handbook says that employee's conduct, including how they manage their financial affairs has a bearing on the public's confidence toward the Bank. Employees are expected to maintain personal finances prudently, etc etc. and seek help in a timely manner if they are experiencing financial difficulty.

Our Bank offers an employee assistance benefits (EAB) program. So basically, instead of a "punishment" policy (as previously stated - very thin ice) our Bank leans toward the employee asking for help if they get in financial trouble. The employee and the Bank (thru the EAB program) will work together before a minor problem becomes a major one. This is of course assuming the emplyoee initiates this course of action.

And if the bankruptcy occurred because of, say, medical bills, or an ex-spouse who walked away from child support obligations?

Any policy needs to be worded in a way that leaves a certain amount of wiggle room to account for unusual circumstances.

You need to be extremely careful. Not everyone who declares bankruptcy is a risk to your financial institution. There are plenty of people who have a "good" reason for taking that route.

Before you even mention bankruptcy in your employment policy, I again highly suggest that you consult an employment attorney. Any action based on bankruptcy could be deemed discriminatory under the statute.

11 UCS 525:

(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt -
(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act;
(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or
(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.

Thanks AG..our code of conduct says essentially the same thing and offers the financial counseling as well.

For those that may be concerned..let me reiterate that we ARE NOT firing anyone for declaring bankruptcy. I was merely looking to see if other financial institutions had a more in depth policy that addressed financial irresponsibility and I was using bankruptcy as an example of financial irresponsibility.

Then I would have to agree with rlcarey that it's a worthless addition to your policy if you have no intention of instituting any corrective action. If it is already covered in your code of conduct, I don't see the point taking it any further.

Also, I would be very careful using the term "irresponsible" when describing someone's finances. You have reiterated your bank is not looking to fire anyone, but in another post you seem to state that you are looking for some kind of disciplinary action.

I'm sure your intentions are good, but you are on extremely thin ice when you start meddling in the financial affairs of your employees. Run (don't walk) to a qualified employement attorney.