2014 - 2015 Employment Practices Risk Control Program
90% of MEL members have adopted the MEL's model employment practices risk control program and are eligible for premium and deductible incentives. These programs must be updated every two years to remain eligible.
Members with updated loss control programs receive the standard EPL deductible of $20,000 per claim plus a 20% co-pay capped at $50,000 and are eligible to buy down deductibles and co-insurance caps. (See note below concerning members with poor EPL claims experience).
To qualify for the incentive, have your General Counsel or Employment Attorney complete this form checking the minimum requirements for updating the plan. It is not necessary to attach any further documentation. Mail the completed form to MEL Fund Office, 9 Campus Drive, Suite 16, Parsippany, New Jersey 07054.
Members that did not qualify for the 2012-2013 incentive must adopt the EPL loss control plan and submit to the MEL for review. Have your General Counsel or Employment Attorney complete this form checking the minimum requirements for the plan. The following must be attached to this form: (1) the Personnel Policies and Procedures Manual, (2) the resolution adopting this manual, and (3) the Employee Handbook. Mail the completed form and attachments to the MEL Fund Office, 9 Campus Drive, Suite 16, Parsippany, New Jersey 07054.
Members submitting the required form by May 1, 2014 will qualify for the deductible incentives retroactively to January 1, 2014. Members submitting this form after May 1st will become eligible for the dedutible incentive upon approval of the application, but not retroactively.
Members without updated loss control programs will have a deductible of $100,000 per claim plus a 20% co-pay with no cap. (See note below concerning members with poor EPL claims experience).
Members with poor EPL claims experience: Members with adverse loss experience over the last five years - defined as - "any member with three or more claims over the last five years AND a loss ratio over 200%" will have a deductible of $75,000 if they have an updated loss control plan and $150,000 if they do not - in addition to the co-pay provisions as outlined above. In a few cases, the MEL Board of Fund Commissioners will establish higher deductibles for members on probation because of exceptionally poor experience.
Public Official's Training Credit: The MEL is continuing the public officials training throughout the state for elected public officials and authority commissioners. Sessions have already been given at the League Convention and the AEA Convention in Atlantic City. The MEL will reduce each member's 2014 liability premium by $250 for each municipal elected official and authority commissioner who completes the course by May 1, 2014. The credit is also extended to the member's CEO (i.e. municipal manager/administrator or authority executive director). The maximum credit is 25% of the member's liability claims fund.
Required Elements for the Incentive
- Employment Attorney/Advisor: An Employment Attorney or an Employment Advisor usually provides advice concerning personnel matters. However, the local unit may designate its General Counsel if experienced in employment matters.
- Personnel Policies and Procedures Manual: To facilitate this process, the MEL has developed a Model Personnel Policies and Procedure Manual that members are free to use at their discretion. Members can adopt the model, take sections from the model and place them in their existing personnel manual, or write their own policies that cover the subjects in the model.
- Conscientious Employee Protection Act Notice: This notice (in both English and Spanish) must be posted on the bulletin board and distributed to all personnel. The notice required by the NJ Department of Labor is included in the Model Personnel Policies and Procedures Manual.
- Employee Handbook: The handbook must be updated and distributed to all personnel. To facilitate this process, the MEL has developed a Model Employee handbook that members are free to use at their discretion.
- Model Local Unit Civil Rights Resolution (municipalities only): Adopt the model resolution.
- Managerial and Supervisory Training: Court decisions made personnel training for managerial and supervisory "mandatory". A signed acknowledgement that the manager or supervisor has completed training within the last 12 months must be placed in the personnel files. Training is also mandatory for the Muncipal Judge, the heads of volunteer emergency service organizations such as Volunteer Fire Departments, EMS units, and the heads of organizations such as Library Boards and Planning Boards, etc., that are involved in personnel matters. The MEL has developed a Model that the local JIFs will conduct over the next 6 months. Your JIF will contact you with the details. The Power Points are listed below.
- Police Chief, Captains and Lieutenants Training: Because Police Departments are involved in a high percentage of employment related litigation, Police Chiefs and at least one other command officer must complete employment practices training that takes into consideration the Attorney General's guidlines for police operations. A schedule of these seminars will be distributed by your JIF.
- Training for All Other Personnel: Court decisions also require employers to offer anti-harassment and related personnel training to all employees. This can be accomplished by requiring your employees to complete the 14-minute online Employee Orientation found in the MSI. Please click here for instructions on how to access this program online. In addition, the MEL also makes this program available on a DVD with this lesson plan. Copies of the DVD and lesson plan will be mailed in late November to all members. Please contact the MEL Fund office for additional copies.
- MEL EPL Helpline: The MEL includes a helpline to its members at no additional cost. Members are required to enroll (if you have not already done so) by calling 415-817-1611 or emailing
For assistance, please contact the MEL office or the office of your local JIF.
Checklist for Members with Currently Approved Risk Control Plans
Checklist for Members without Currently Approved Risk Control Plans
Model Employment Practices Policies and Procedures Manual
Model Managers and Supervisors Training Program for Municipalities PowerPoint Print notes for the instructor's guide.
Model Managers and Supervisors Training Program for Utility Authorities PowerPoint Print notes for the instructor's guide.
Model Managers and Supervisors Training Program for Housing Authorities PowerPoint Print notes for the instructor's guide.
Model Employee Anti-Harassment Training Program
||- Rights and Duties of a Volunteer in Local Government