Without question, social mediahas revolutionized not only the way we connect with friends andfamily but also how we conduct business, including the hiring,discipline and termination of any business' most valuable asset—itsemployees.

This asset can quickly become a liability, however, ifsocial-media risks are not effectively managed. Here are somepoints to help your clients lessen those risks.

The Hiring Process

Many hiring professionals and employers' first stop during thehiring process is social-media outlets to screen applicants. Theyturn to LinkedIn or Facebook to learn more about an applicant'seducation, their friends or even their social behavior.

Sometimes, a candidate is rejected based on content found on theapplicant's social-media pages, which could include inappropriatephotos or comments, references to alcohol and substance abuse,discriminatory comments, slanderous statements and/or the sharingof confidential information regarding their previous employer,proof of poor communication skills and exaggeration of theirqualifications.

While the above reasons are legitimate cause for concern, andemployers advantageously have social media at their disposal toprevent negligent hiring, a business can be at risk fordiscrimination if accessing social-media sites that containprotected class information not privileged in the normal course ofthe hiring process.

To mitigate this risk, employers should use outside thirdparties in their hiring process, including background-verificationcompanies and/or recruiters who document content acquired onsocial-media sites in the candidate-selection process.

Establishing a Social-MediaPolicy

Employers need to have a solid social-media policy in place.This policy should:

• Outline what constitutes inappropriate use of social media,from personal use during work hours to the type of content posted,including defamatory language about the company.
• Address the penalties for disclosure of trade secrets on publicpages, in a language and context that can be understoodclearly.
• Address disciplinary action and termination procedures forviolation of social-media use in its various forms.

Document, Document, Document

If an employer is considering disciplinary action, includingtermination based on content found on a social-media site or otherinappropriate use of social media, it is imperative to adequatelydocument the content that is the basis for the action.

    Employers, however,need to caution themselves on the content and extent of the policyitself.

One of the issues most commonly raised in claims alleges that anemployer has overly broad policies restricting employee use ofsocial media. The policy an employer puts in place must align withthe National Labor Relations Act's rendering of protected andviolating behavior.

It would be in the interest of the employer to consult with anattorney who specializes in employment-practices liability whendeveloping social-media guidelines.

Purchase Employment-Practices Liability Insurance

For a price comparatively nominal to the cost of litigation,employers can purchase an employment-practices liability insurancepolicy (EPLI). An EPLI policy provides protection for the employerfrom the economic and noneconomic losses resulting fromemployment-related claims, including but not limited to claims ofwrongful termination, discrimination, harassment orretaliation.

  In addition to an employer's risk-managementportfolio for social media, an employer's overall risk managementshould include an EPLI policy to protect them from the costlylitigation associated with labor and employment.

  A small-business owner with a few employees canpurchase an EPLI policy for around $1,000, while the cost oflitigation could reach hundreds of thousands of dollars andfinancially devastate an organization.