March Madness Drains Economy!

Thanks for Charlotte Jensen of Cole James Associates for allowing us to reproduce her article here.

March Madness is here!

The three-week basketball frenzy is estimated to cost U.S. employers over $1.5 billion in lost productivity. Despite this annual drain on productivity, many employers are willing to overlook the temporary distraction. Some employers even embrace the event by setting up TV's in the break room, having team spirit days, etc.

Whether it's March Madness or another sports tradition, if you are open to your employees engaging in sports activity on company time, there are a few things you should think about:

1. Betting on organized sports is largely illegal, and there are also laws concerning "social gambling", which would include a typical office pool. Even where there is tolerance for social gambling, it is vital that the "stakes" are low, all participants are on equal footing, and no one makes or earns anything other than the winner. The "host" of the pool does not get a cut and is a participant with the same odds as any other participant.

2. Reiterate to employees that company policies still apply. For example, if you have a policy against solicitation, employees should only invite participation outside of working hours. Other potential policy concerns include using Internet, email, copiers, etc., for non-business related (and potentially illegal) activity.

3. Participation must be completely voluntary, and no employee should be made to feel compelled to participate. "C'mon, it's only five bucks" is a loaded statement!

4. Regardless of the legal issues surrounding office pools, they are still a form of gambling and can bring ethical concerns to the workplace.

This is not a suggestion for or against stopping the "madness". It can be an excellent opportunity to build morale and camaraderie among employees, which is undeniably an essential element of employee retention and long-term productivity. There are, however, legal and ethical issues surrounding this annual tradition, and when it comes down to it, the seemingly harmless office pool is a form of gambling, and employers must do their part to protect their interests. While law enforcement may have far more important things to do than police the walls of your cubicles, there are cases where they've chosen to make an example out of a company. Don't let it be yours.

This is meant to be general information. Cole James Associates is not a law firm, and the above should not be considered legal advice, nor is it a replacement for seeking professional counsel for your specific situation.

Cole James Associates, Inc. provides Human Resources services and support to small and medium sized businesses. To learn more about these services, please visit their website or call (804) 339-5576.