Boards & Commissions Supporting Documents - 04/11/2006 - Board of Trustees (4) ITEM 1().1:.
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AGENDA ITEM
Regular Board of Trustees Meeting
of
April 11, 2006
SUBJECT: Nepotism Policy
FROM: Richard B. Boehm, Village Manager
BUDGET SOURCE/BUDGET IMPACT: N/A
RECOMMENDED MOTION: I move to amend Section 7.09(b) of the Village of Oak
Brook Personnel Manual.
Background/History:
Trustee Manofsky has requested a revision to section 7.09(b) `Employment of Relatives"
contained in the Village of Oak Brook Personnel Manual. The current policy reads as follows:
"Except with the approval of the Village Manager, it shall be the policy of the
Village of Oak Brook not to employ relatives of any elected Village official,
member of any Village Board or Commission, the Village Manager, department
heads, or Village employees within the same office, department or division."
Village Attorney Kubiesa made a suggested change to our policy as outlined in his memorandum
of January 30, 2006 (attached). After considering the attorney's recommendation and following
further research of other communities Trustee Manofsky suggested, in a March 24, 2004 memo
to the Board (memo attached), the following language:
"After adoption of this policy, no person shall be hired or appointed by the
Village to any office, position, employment, employment contract or duty for
which the salary, wages, pay or compensation is to be paid out of public funds, if
that person is part of the immediate family of any public officer or employee. For
purposes of this section, immediate family shall include spouse, mother, father,
sister, brother, son, daughter, mother-in-law, father-in-law,brother-in-law, sister-
Last saved by Administrator V:\AGENDA\Employment of Realtives.doc
Last printed 4/7/2006 12:40 PM
in-law, grandmother, grandfather, grandson, granddaughter, uncle, aunt, niece,
nephew and first cousin."
Some additional information has been assembled for the purpose of providing the Board
information for its deliberation on this topic. A copy of a June 4, 2001 Crain's Chicago Business
article on this subject has been attached. In addition the employment of relative's policy from the
law firm of Sayfarth Shaw, as amended for municipal use, is as follows:
Employment of Relatives/Domestic Partners/Significant Others
The employment of relatives/domestic partners/significant others in the Village
may create the potential for serious conflicts, favoritism and adverse employee
morale. In addition, personal issues from outside the workplace may be
carried into day-to-day working relationships. It is for this reason that
candidates who have a relative/domestic partner/significant other currently
employed are not eligible for employment unless such a restriction is
prohibited by applicable law.
In the event that employees become related, domestic partners or significant
others subsequent to hire, such persons may not:
• Report to or supervise another relative/domestic partner/significant other, either
directly or indirectly.
• Work in positions where such a person has access to sensitive information
regarding relatives, domestic partners or significant others.
While the Village will attempt to find a comparable or suitable position for
such employees, the Village has no obligation to create a new position or make
significant changes to achieve this result.
For the purposes of this policy, relatives are defined to include spouses,
parents, children, brothers, sisters, brothers- and sisters-in-law, fathers- and
mothers-in-law, sons- and daughters-in-law, stepparents, stepbrothers,
stepsisters, and stepchildren. The terms "domestic partner" and "significant
other" apply to individuals who are not legally related but whose relationship
with the employee is similar to that of persons who are related by marriage.
Recommendation:
I move to amend Section 7.09(b) of the Village of Oak Brook Personnel Manual.
Last saved by Administrator V:WGENDA\Employment of Realtives.doc
Last printed 4/7/2006 12:40 PM
Law Offices i
KUBIESA, SPIROFF,GOSSELAR&ACKER,P.C.
533 WEST NORTH AVENUE,SUITE 204
ELMHURST,ILLINOIS 60126
TELEPHONE(630)516-1800
FAX(630)516-1808
MEMORANDUM
TO: Richard B. Boehm,Village Manager
FROM:
Kenneth T.Kubiesa,Village Attorney
DATE: January 30,2006
RE: Village of Oak Brook Nepotism Policy
Both Peggy O'Connell and I have reviewed the existing"Employment of Relatives Policy"for the Village
of Oak Brook in light of Kathy Manofsky's questions and concerns about that policy, and we propose the
following change to that policy. The existing"Employment or Relatives Policy"of the Village of Oak
Brook states as follows:
Except with the approval of the Village Manager, it shall be the policy of the Village of
Oak Brook not to employ relatives of any elected Village official,member of any Village
Board or Commission,the Village Manager,department heads,or Village employees
within the same office,department or division.
We suggest that this policy be amended to read as follows:
It is the policy of the Village of Oak Brook to select the most qualified person for any
position posted for hire within the Village. Any candidate for employment by the Village
shall be reviewed and selected for employment based upon criteria determined to be
appropriate by the department head who is posting the position for hire and the Village
Manager. It shall be the policy of the Village of not to employ relatives or friends of any
elected or appointed Village official, department head or other Village employee within
the same office,department or division wherein the candidate would work,if hired,unless
the Village Manager determines that the prospective employee is the most qualified
candidate for that position at that time.
You will notice that by insertion of the word"friends"in this policy deals with the"cronyism"Kathy
raises,but the Village Manager can void a harsh application of this policy in the case of a qualified friend
or relative making application to the Village. Let me know your thoughts and comments about our
proposed change before we show it to Kathy Manofsky or the other Trustees.
KTK:amg
cc: Margaret M. O'Connell
CADocuments and Settings\rboehm\Local Settings\Temporary Internet Files\OLI(Fboehm(nepotism policy)01 30 06.doc
March 24, 2006
To: All village trustees,president of the village board and village manager
From: Kathy Manofsky,trustee
Re: Nepotism
Attached please find a copy of our current employee manual policy regarding nepotism
and my proposed new wording. Also please find copies of policies from neighboring
villages. All of these policies have withstood the test of time and legal challenges so any
option would work. I propose to adjust our policy to avoid nepotism for two basic
reasons. Firstly,nepotism smacks of elitism and connotes favotitism. Secondly,we have
five million persons within a forty mile radius so we don't need to hire family members.
In some cases having family members on the same payroll could shift allegiances from
the village good to the family goals, whatever they might be. In any case, I believe hiring
family members is a bad policy . To instill faith in our government and transparency in
our hiring practices,I propose we pass the suggested wording. All current family
members working for our village will be grandfathered in.
March 13, 2006
To: All trustees and Village President
From: Kathy Manofsky
Re: Nepotism
Our current policy on nepotism reads as follows:
Except with the approval of the Village Manager, it shall be the policy of the
Village of Oak Brook not to employ relatives of any elected Village official,
member of any Village Board or Commission, the Village Manager,
Department Heads, or Village employees within the same office, department
or division.
I propose the new wording shall be:
After the adoption of this policy, no person shall be hired or appointed by
the Village to any office, position, employment, employment contract or
duty for which the salary, wages, pay or compensation is to be paid out of
public funds, if that person is part of the immediate family of any public
officer or employee. For purposes of this section, immediate family shall
include spouse, mother, father, sister, brother, son, daughter, mother-in-law,
father-in-law, brother-in-law, sister-in-law, grandmother, grandfather,
grandson, granddaughter, uncle,aunt, niece, nephew and first cousin.
i
FROM :V I L OF LISLE FRX N0. :6302718959 Mar. 08 2006 03:08PM P2
quV.
•y`
For general Information purposes, the Department• Head, i-luman:�•.: � r.•: '
?'! r\Y.. ..6 \iYtl...-.� AA.. [•...,. LPw.a 1,,ywi+} }n nlsesc+} .fif'
Mescur=c s TIt actor or 111111age Manager 1has w tv dught Lv 1, .\I 18•"
followi - information from an employee ian oivairoutside emplo nneet :,�. r•;.
The name.of the erriplo;er. _
0- -3a16a 1HI M-1 Ar.$H 411
rt'a!H4i i!€G°aHhrir •'
9{L.H i+3Hi.i3 'r'S Lff 2i• ;:Z•',•.•+�
In J4eOtf .he i Gs tt Jt Haac�t: and i 3s3�s' Command Officers, -E"si. any e420Q".h
ampitoymer t Of anti . it 0- M_l.iSF QEl _R 0 QroVeU UY 'iia Lrhia1 til rtitdv�.
; v r
���:���> �� �: •��f_"-®mss, ':3s
`_vn+eesw3 -Nk% 14 n■■r nr rlwnln }h'°r� f.nn eanaar■•■iit:ew ^4 #Smt% mn 4.` lhp rntal!
�Fl1.Y6,�-*6 L3® 74R■�■•! W l�/11Y, 110 MGM 60 I2a_1 Syl}� 9141WIH Iy16at VI 140>, A q4I v a-1IIay 1a.-7 u$
e loved s0 the =ilia a cf Osie at a one times unless a rov- obtained Y :
0??2.3 s y� a. a, sa:.a :eYiof ,ria✓` . ■. ..l P'.a $ ' L1 ...
i $ SAH S_ S p V !S e� by
�m. the Village ooarc o. �s'ee_ Lycra . a�pro a[ prnc__sc e
determination ehat neither conflict of inteerLr., nor a Sitlawti:'r; existati'>'�l',9t�by u;ey +.
3i;y `•5.
family member cr spouse has a supervisory/subordinate working relations, or any
tAU16C ; iil.667arra(ice witT7 lilt! villauti�s uUtgralluf its is ilk-&V dv Cie f. For Purposed Y3 •..4'„_this section, .he tem family shall include the e€npicyeets child, grandchild':,.
nQ rdret innrHornnt r\orn $_In_I 1 ! nr�rlil �■r n} 61rra}F■ r pici.�r, �r��•LLsi•t�■r_tn_ln■ti':.: .'
t/q1+ , 3�vt.r'ailwf vt 1a, oris-tee t-1c�i�a, i.,-Ap.a a1 fi, b,i . e , sisl , ratha �+l i-ill t►r:
al-ter-InAw`, niece, or reepho`, --
••v j f�”C
. 01219 G-Ift aaa •Yee:;—R-aceiant d Guts ia=ad %Giatuffies by E:m!- nsovees: r,.•: ;r+
A 'v ilfaiC� e pioyees will follow the rnardate` o the State blit Been ctu., r,•.
adopted t _Village ordinance#99-3123. Sacta n 4.0. of the Act states:
{tom
"Except as otherwise provided in this act, no member, offioer; employee, or jud" <`
gs,,hall solicit or accept an; rift from any nrchibited source Or in violation of any
:>re,; 4 oia4A -As +ta nes:® or r roH+i.�}:�a►� '�S.:c+ m..9.. ! 6.. ..i 9....i...7..' ':.a,�=�•!
e—, ■L.l, air /egfulen Livia. f:HH.7 Ina A applies tial and Includes •r„r,yf
spouses of and Immediate family living with the member, officer, emp€oyee,.or
il�dua. No nrahibitef3 source shall offer or makelf a rti- heat`liolat®g tinily Ao.•*ion1.�
M�a 1 4Y O■lav Se-1.1 .af.•4
,,�
I Ito ;61111 4 rr3 IS Got itIGO tta:
Any gratuity, discount, entertainment, hospitality.', loan, forbearance, or other
2�nni6`11a nr in4 nrvikln W%rv% k :i .,, s..... I .3• 1-, a s +• ia�
a ssall.rl..s a1 aLE�La awl ulv Bari+1 1/i 91r8 11101181.131 i value incl[.dLiirik�, U[i[ n{J[ i1�3 i ?v:�:•i:
cash, food and dank, honoraria for speaking engagements related to or
kra:,:n
a-UriaY uta-ble 'to government employment or aha ^Me—i'i ren�■limn of am q.+...1...,
..,•..+a.•...r.• ! Laav vatava ua vi7t LIWII !.t! G1I1 9112 t11yS8
member, officer or Iud e. .w
J.a�54,
?"1_ act states that no o€t;tr as or ernIoy a :4'Say solicit-Or accept any -i
�}f .a lh�i�r
i -J -•a vl. a:ij S /l` 1.1ni ,L�l i�:'y
f Es`g s'k z MIMS- A i'1h"M m. urce is: � *\
b �t.
02/28/2008 09:Z9—FAX 630 469 8849 VILLAGE OF GLEN EL-TY-N
03,
C!
=.Vie
41 tjdM-The\11filage will attempt,to saled.the candidate Ift determines is the most
M. be posted.
Cluaffilied candidate for any All vacart.t. s-
%W11111-Uge win consf-der all, appliCal Its, is Moluuil illd IOUs I X-11 If.emplo yees, who have aripfied
for the vacant position. -1 be'Village will hire individuals upon the basis of their
anni erf, Whig i
nuaiffic-Ations for the inn for which they have ppii -;n will usuafiv, in-cludie a
consideration of,but shall not be limited to, an employee's knowledge, skills, and
ability to pal 11W,—is ti le essential functions of he appiliad-sor position efficiently and
effectively, 4h or Wthout aniv reasonable ac-commodation required by law.
their-=- Ibllities and in ivMich 6Lhey will be able to achieve both personal satisfaction
alit--' 0000rhun&1v for crowth. The\fillage will attempt in [)mvidp inn-rpiateri tminirsn j
and educational opportunities for employees. 3,
that no��p��r
e-n -1 allow a far
Lh
Icy
it is the policy oft e Millage that no department will allow any family member to
is a�!!i ___-n
supervise the work performance of another family member. in addition, relatives
of, Ula atillage President and N1111aelip-Trus tees !n--,v r- ha=mnlnwari hu 44-te Villa o_
Mag I/
I It is permissible for relatives of DepadmentlManagers and other supervisors to
wo rk,for the'VI-Ilage, but not in the same depaniment.
4-
r ndidates for regullar alit time em-1 ment.--.-A. a have received a cGndiflonal
a.. — Z, .... ... ... Plo-Y
offer of employment shall be required, as a condfflon of employment,to undergo
a physicall exa!nidation, at village expense, administered by a physician
designated by the Village-
4.2 Discril-inat- The%fl.^!e A.
againzt any arnpi yee or
candidate ft-,r employment in any manner which would violate Federal or State
I I& I fh ejrahi ri Q
w because of race, coGolor, religion,-sex, rnaritalsm s Ln v Me Cischlame
from the military(except dishonorable discharge), national origin, age, or disability
Octed ated job
or ainy otherlawally pro,- -4 status unrelat to -' b requirements.
4.3 Probationary Perfod-TMt 1C
e pre-Dathonary period is a period during whi h all, new
,-s sire-illen -n ^ppG.-W3-to demonstrate thtz-i+alLAINIL to
arld -ramoted- WN at ;VU.
perform the requiremients of ti le positlonlibr which they have been hired or to
-his pt
wt icl-,they have beer, promoted. 71 period is 12 months for new. em p-joye-es
(except P;Iice Officers)and 0 months for promoted employees. The employee's
Department MVIp-ger shall the arnplvyee has succes-11-1111Y Complated
1 1.11 Vill 6 142 014.1
the pro-bMationa pedod.
-12-
Fob_28_06 03:00P VOG EMP RELATIONS 630 434 5484 P.02
2.5 Eieaular performance Reviews
Alit employees gerieraily°will have their perfori-trance reviewod no lasss frequently!hall annually and prior
to any salary adj:usti*,cant. lees. 74-52 438121/74); Res. 86-35 (1211/86).
2.6 Relatives
it --hall v the licy of he Villano not to amnl v relatives of elect-0 Village officials. Relatives ref
a a e p^�.., y i.. �.y i•rJ7
Village am:loyees may be employed,only by approval of the Manager,in crscs whare ncithor employee
.dvirlL�he tfid di,.,,`.t sLy^,eY•.is.^.r of the other, where both wero previously amployed try the VilingC and the
Manager deterin-Ines that no conflict ofinterestwill result in the continued employment of both, or
wlthe p,Csitiu could no' otherwise be filled. For pLlrposes of this Section the term "rclativos"shall
mean husband, wife, Childfen, father, mother, father in-law, mother-In-taw, brother, sister,
yr a"3iiier-in-iu eJ, .iio'airi,i 13v+, 'y1f>i.^+L�f�t1��r Y,�� :�y0 r•r�.�a3i�r Res.74-552 (10/21,/74); Res, 81-56(101.5/81):
Res. 66-35 (12/1/86; Res. 88-41 (8;29188).
2.7 Hours of Work
This section is intended to define the hours of work within various Village departments and provide the
iasis for calculation and -avment of overtime, and provisions for pAid and unpaid leave. However: this
shall not be construed as'a guarantee of hours of work per day or per work period. The duration and/or
composition of the .Roil; period mar be amended or ahore d by the Manager, based tipon Thea worn
requirements of the Village. Res. 86-36 (12/1/86).
2.7.1 Work Schedule
-�� .,e �. .;a = r? , • _._ _ �,y., +..4
work schedule of each employment position within the Village,
2.7,2 PPv.ggrted_..P��-35 (1211/86)
cal in genera) the work perioral for eamniroyeas is defined as a conSRr utive Seven (7) day period
commencing at 12:420 a.m. Sunday and ending at 11:59 p.m. Saturday,the seventh day,during
which employees are generally scheduled for 40 hours of work. Res, 88.41 (8/29/88),
(b) The work period for sworn aitd non-sworn personnel of the Police Department and
Communication Operators is defined as a Consecutive seven (7) day period commencing at
12;00 a.m. Stir-day and ending at 11:59:59 p.m. Saturday,the seventh(7th)day, during which
employ8es are generally scheduled for 40 hours of work per week.
(c) Except for the Chief and any Deputy Chief, the work period for sworn personnel of the Eire
Dopartment is defined as a con5ecutive twenty-eight(28) day period cgmmenring at 7:00 a.m.
Sunday and ending at 6:59:59 a.m. on the Sunday twenty-eight (28) days thereafter.
2,8 Lu -ch and Best periods
Lunch and rest Periods snail be at times and locations scheduled and designated by the Director.
Res_ 74-52 (10121/741; Res. 86-35 (1211186).
2.9 Overtime And Bonus Compen-sation - Res. 86-35 (121118-1: 92-31 161192).
2.9.1 Exempt Employees
let Exempt ernplayees generally are not entitled to overtime compensation.
!bf if an emergency or spariol @vent is declared t}y the Manager; an exftmpt cmpfrsy$t; who
works during such emergency or special event may, be eligible for overtimo payor comp time at
I eJa times his/her present hourly rate.
9
I0; 50a Vi aCe of Burr Ridge 630-654-SE55 p. e
ARTICLE 11
G,7.10, i3 EXPLOYM214T CONDITIONS
General
Fhe �yval ^f the pillage Board, the Tillage
u appy
Ad^I+r11TSttrdYt Y _s empowered to hire appoint and terminate
or remove a1= Village enyloyeses and offacers ;except
department heads, professional consultiariLa such as tale
vi'lage ^o ns�..:.t- g Eng_'eer, Lid tor. aitc rn_¢V and
�y „ �� �� suoh hirin a pointment. termination or
treasurer, uil�ya '
r n.:i s exp espal y ` onji ded iur b r i tic-a?^i e
r�sitVV Gl i� v4i=� � .�t....� ti 1 r"'- J .-"cp .....✓_..�.
a_
however, th" L �h hiring or appointment
statute; provi�.ed .. t the i.�,
Tj-, _ sP'ff t_ •� bbp f+. "at willti Ur
of such Gtii�lily rG� alFu Vi L•�a.4Y r�.. hal? �%`v .1n �dF
month-to-fitoii% a'+ae18, and further provided that the
salaries of such employees Or c,fficerS shall be wit !gin t`0
specified limits set in the v .11age' s annual budget . (,See
Appendix H - recruitment Manual - sur forth er details - }
(Revised. 2-94)
TI . Eg'ual 02portullity �loyer - Non-DiscrizLination
No Village official, agent or employee shall irk any way
dizcharge, ,reef-se to employ or discrimi-nate against anv
person in regard to tenure, terms or conditions of
emplo}���.—L, promotional opport�-'ni Yi Pq. tra�n�ng C}Y tY:e 1_L
ike
who is otherwise qualified on the basis of race, religion,
stat,�a p7-1hysical or mental
ilea., co.ivr, creed, ii ul,1 - s, C'-�L
handicap, age:, natiOnc'al origin, ancestry or unfavorable
-,,a 1 ' + r ., na All apcT?. licants or
dit3:-.�ha'�•uc L 1 L:Ill1 , �.6114.aiy SL.i'v i44
employees sham be con'idered only cn the basis of-
qualifications as aCecTil.red by the position being sUl1gh L ur
held relative to experience, training, physical fitness,
ability, skills, knowledge and personal. chcaracte.r�iutics and
�.
intearity as a proper representative of Village government.
When reasonable, as determined b`1 the President. and -"oard
of Truste-es, accommodations shall be made by the Village in
order to permit handicapped employees to perform their Job
functions .
III . iY'oh-4hit-J o `. of Em-p ent: of Relative_
�,�off:..
A. The family of any elected official in the Village is
QiEqlailG 1• CU from holding any :vT" ei97 8d Office ^r
em-loyment within the village organization during the
term for which said official is active within the
Village organiaatIon.
�, 17. LB . III= Village shall empicy family members of than
current
Village employees.
iv. alb,1 nal 'w ami- -tin
Pros_oective employees may .be asked to undergo and
sar-Isfactor`..:.V_ paes a Complete physical (and -vs..s3%
-f rQa�ziredi e xamin anon, including a drug test, prior to
employment by the VillaQe. The purpose of this exa-minat crl
3C 6T RV: 1/I1 LAGS OF HINSDALE; 630 789 7015; FEB-78_06 i :F?Pm; PAA, 1 11
T4L'S5 ENf-v
ve:�anry n.if}«r+ f1+�
..l
ami. vi rsc aia,� OYI�vitav wQvaasU.��,,�u7vai3 scta, r aaavSa. ia iava eaa}'.,3T
i�'%d t^y""d- b L'mne ' unless
-m -finaa l• mmuei.ed in.a o ;Yn is iDti '*l-as d&—mime:3y
._ �oj'C�=��' ?:3�t11 ___Yi#s mss:'ar°.g vw.ti�:.G .x:l� WF$ J ti:'ar�LS isJ Se"�VS 1SA:'
r�z®r ♦saaW�yf�.i 1.da►6iGesa,aaa�/a�O/A6. lP3yA�L>Ll iyDEr yZ�ZTIALG%�vf3. �map).',. RA
g.
1. T</he fim ily of m �
oled official in ;%lila are disqualified Itom holding any
V./+ y trMWu vi vid v .bdiau v�ima raai `n'tf;ia�i A.. V;}11. va uiu'iA8'rsivfa spa 4i'a�[lii RYUV abax°ti ivi
which said ofti;.ial is active itl':m the Villose orzt tsization. .
'T hf- filmOv n!' rnu fh, V;Ila�n� is disc`u'mlifl-ac i frum holding any
Crmn ntra�f�r1 fro itP mm�}n<r.v�sanP ,srf�,in flap r}w. :Henn♦ Lvt <.�}aind< t�+n nilna to
+.+f - office V, wu�aVJaa.vr$, is satuaa aawv .wa.Yaa uar�ra,a aiavu ...M <ia,avwi+l r:a
responsible.
7 'Me t V,'1i9trn sha11 notiseti.ln<.La1_ } a nsnb«ro iii n�RYH\t {�}i a��3Ynt<�AL�v@
..�wvi+ e a _ aM. W� _ ifYia.�WU y Y11.�- 4/ i -wda -Y•
PROBiA avNAIRY 11PxEiRIOU
?� re vks::�:sar.r Z cv: a,SF .a h� no
` a n :rroa rmr^ �?±zay�srnrvs n us�T n. er=ae� <evei a a3: aaPa3,zeri
a *sw,icsor
an opportunity 10 vusel ve art ei-n lc vee.;S W0 y to tair.le moloyee.anelot'to reject any :nlployee
whose work Ow a fails � 38a�� pirad u,nrtc gtssa,r�rt�, A n7ehatiomry Cr:2�'mu mow ivr
tm.nmated at arn., uwa.c during the probation pnacd
t pW1y-5'IIC .''.•icb Com:to t'mMign
The?ng a M--gg s,s9rvafnin<s,nfs• n,rn tw.<,eot«:o �° a...t►.. i•:.t..A... aw:.<e3 �...a9 t!1
;} sr;a+:.i..uv,a<.4.... aa.rarwwu a v oucdr<sv�sv a 3iavvia$a<ilacaar �ra.cavaa�.n vada C ,'YOU:
A �4�dal=r p"a ent
i.a..v.::traV�"a'tia.u�.
R T�sl5LA-+r(oa matt }aa ro.�.-�.»�rae„�i?a�.i Y«. sloe y/[y��a�a°tiL°m aa3"4',"vi r •d
*p _ ., -Y w� ,.IVfiJ„aii]�\�laiiilvYiF' hilt L i L ave! T4a3�ld j/ �1 b214Mat�yl'b a.7dvla
Hem',4i .'anwavei-d by TWY Village NA—an����
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Search Result Rank(R) 2 of 7 Database
Citation CRCHICBUS
6/4/01 CRCHICBUS E20
i
6/4/01 Crain' s Chi. Bus. E20 a
2001 WL 7067123
4
Crain' s Chicago Business
Copyright (C) 2001 Crain Communications, Inc. All rights reserved.
Monday, June 4, 2001
(
x
Vol: 24 Num: 23
Crain' s Extra: Work & Life
Employee relations Fewer companies have outright bans on nepotism today, but
they do have rules to preclude favoritism. 4
s
Lisa Bertagnoli x
a
t
In early February, Daniel Fischel, dean of the University of Chicago' s law {
school, resigned his deanship because of an issue so old-fashioned it almost §
seems quaint: nepotism.
Mr. Fischel stepped down after the university asked his girlfriend, a
consultant on external affairs for the law school, to leave because their y
relationship violated the school' s anti-nepotism rule. (Mr. Fischel did not y
respond to requests for a copy of his resignation letter or an interview.) t
The university' s anti-nepotism clause, which prohibits unmarried partners as
well as married people to be in reporting relationships at work, is rare these
days. Companies have largely relaxed such policies in recent years, partly `
because the tight labor market has them more worried about recruiting employees a
than keeping related ones apart.
S
Keeping investment
5
Also, people these days often meet their spouses at work, and in a tough labor
market, it makes more sense to keep both partners on board rather than ask one y
to find another job.
"Companies don' t want to lose their investment, and they don't want (the
spouse) to go to a competitor, " says Cynthia Ferrara Elstien, president of CFE
Consulting Inc. , a Chicago human resources consulting firm.
Though many large companies don't actually ban nepotism, they do have rules to
preclude the possibility of favoritism.
Schaumburg-based Motorola Inc. and Northbrook-based Allstate Corp. prohibit
blood relatives and married couples from working together directly. Allstate
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6/4/01 CRCHICBUS E20 a
even frowns on dating relationships, says Pamela Murphy, human resources senior
manager at the insurance company.
d
Family-owned and closely held smaller businesses are less likely to have any
rules. Such a policy would be perceived as hypocritical, says a spokesman for
Melrose Park-based Alberto-Culver Co. , a personal care products company that' s
run by descendants of the founding family.
"It' s healthy to recruit people you know, and whose work habits you know. It' s
somewhat the natural order of things, " says Don Urbanciz, an owner and CEO of
InsuranceNoodle Inc. , a Chicago-based business insurance pro-vider. "Then again,
I have relatives I'd never hire. "
Mr. Urbanciz' s son Jason is an agent in the company' s online division, but ;t
doesn' t report to his father. "Whether he gets promoted or fired will be up to
his supervisors, " Mr. Urbanciz says.
James Kirsch, CEO of Especialty Brands, a Chicago manufacturer and retailer of
maternity clothes, says nepotism policies are discriminatory. "When you have an
anti-nepotism policy, you have a preconceived notion that (relatives working
together) will cause problems, " says Mr. Kirsch, whose father founded the k
company, now with 1, 500 employees, which has relatives working together both in
the stores and the factories.
But anti-nepotism clauses make sense in some situations, says Cathleen
Faerber, president of Wellesley Group, a recruiting firm in Lake Zurich. For
example, she says that human resources workers should not have relatives in the
company because they have access to a great deal of confidential information,
which might be conveyed-deliberately or inadvertently-to a relative or spouse.
As anti-nepotism clauses evolve, the next step will be addressing same-sex and
cohabiting relationships.
s
Monitoring cohabitants
Lisa Sprenkle, manager of human capital at Andersen in Chicago, thinks it odd
that many companies have extended benefits to same-sex couples, but haven' t
changed their nepotism policies as well . As for employees who live together, Ms.
Sprenkle says, "Usually companies don't want to monitor that, but they need to. "
T
By defining relationships by household rather than marital status, Deerfield-
based Walgreen Co. ' s anti-nepotism policy covers same-sex and cohabiting
couples, a spokeswoman says. The policy, which applies only to full-time
employees, prohibits members of the same household to work at the same retail
location or in the same department at non-retail locations.
Legal in Illinois
By contrast, Northwestern University' s policy (which applies to both staff and
faculty) prohibits relatives from working together in relationships that "may
influence an employee' s status or opportunity for advancement. "
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The policy defines relatives in detail, down to step-relatives, in-laws and
nieces and nephews, but does not list unmarried couples living together or same- y
sex couples. A spokesman for the university said he doesn't know how such cases
would be addressed.
There' s no question that anti-nepotism policies regarding married people are
legal in Illinois, says Gerald L. Maatman, partner at Baker & McKenzie in
Chicago and chair of the law firm' s global employment-law practice group. Not
only are they legal; they do not interfere with the state' s law against marriage t
discrimination, he says. a
Mr. Maatman says the precedent was set in 1995 when an Illinois Appellate
Court ruled that a Downstate school district didn't discriminate when it refused
to transfer a female teacher to the school where her husband was principal . The
refusal was legitimate, Mr. Maatman says, because it stemmed from a sound
business reason: The school district did not want the couple to be in a
reporting relationship.
Even co-workers who are dating might find their privacy taking a back seat to
workplace needs if their employer suspects the relationship might cause a
workplace problem, says Brian Arbetter, partner in the compensation and }
employment law practice at Baker & McKenzie.
To be sure, it' s a grayer area-does one date, for instance, connote a dating
relationship?-but it' s one that employers can get nosy about if they have a
legitimate business reason, Mr. Arbetter says . s
a
Says Mr. Maatman: "It' s not an area of law where employees have a lot of
rights. The employer has to treat someone in a non-discriminatory fashion, and
as long as the decision is legitimate, the employee has to abide by it, " he
says, adding that he' s never had to defend an employer accused of wielding an
unfair anti-nepotism clause.
a
The responsibility of finding a new job rests with the employee, though
companies often will help, Mr. Maatman says. Companies are best served by
leaving the details up to the couple involved, and not allowing even a neutral
factor such as seniority decide who must leave.
"That gets sticky, especially if a junior person is female, " he says . "That' s
where nepotism policies and anti-discrimination intersect . "
TABULAR OR GRAPHIC MATERIAL SET FORTH IN THIS DOCUMENT IS NOT DISPLAYABLE
Photo Caption: Family ties: Don Urbanciz, whose son works at the insurance
brokerage he heads, says it makes sense to hire employees whose work habits are
known, but adds, "Then again, I have relatives I'd never hire. " Photo Credit:
Steve Leonard
---- INDEX REFERENCES ----
KEY WORDS: ECONOMY, BUSINESS AND FINANCE
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