As workers spend more time socializing and communicating online, the risks to their employers have begun to multiply. Potential pitfalls include PR disasters, online harassment, leaks of proprietary information, exposure to libel suits and significant fines under new federal regulations.
Employment lawyers recommend that companies post explicit policies regulating the use of social media. But many employees shrug off the potential consequences of their online activity, said Renee Jackson, a labor and employment attorney at Nixon Peabody in Boston.
“It’s important to spell out for employees that anything prohibited by your (information technology) or communications policy includes social media,” Jackson said. “Because they see social media as personal, employees have some sort of notion of privacy.”
Fast-food chains have suffered a string of embarrassing incidents in recent years when employees posted photos and videos of unsanitary conditions and outrageous pranks.
While not as sensational, routine online activity can be just as damaging to a business.
One obvious downside is lost productivity, as employees spend more time on addictive social media sites during the workday, Jackson said.
Social media sites offer the temptation for sexual harassment online, Jackson said. An awkward dynamic can develop when an employee receives a Facebook “friend” request from a superior and feels pressured to accept, which will give the boss access to personal comments and photos.
Other risks include the release of proprietary information and public relations nightmares from employees’ poor judgment.
Companies can be sued for trade libel if employees post false statements about a competitor, and new Federal Trade Commission guidelines enacted in December threaten fines for certain types of postings.
Companies whose employees post reviews of their products without disclosing their affiliation can be subject to fines of $11,000 per violation. That regulation was prompted by bloggers who were paid to write positive reviews of products.
Mindful of the need to set guidelines, commercial real estate brokerage Jones Lang LaSalle has put in place a policy governing social media usage, spokeswoman Brooke Houghton said.
The policy warns employees against posting proprietary information or violating client confidentiality and infringing on copyrights. Employees should state that their postings represent their personal opinions and not the company’s, particularly if they identify themselves as a Jones Lang LaSalle employee, Houghton said.
“That’s where we say, ‘Now you’re positioning yourself as an employee. Just make sure you use good judgment,’” Houghton said.
Businesses that don’t have a specific policy addressing social media say their employees are subject to the same rules that govern written and verbal messages.
“Our code of conduct is we hold our employees to the same standard in social space that we do for other communication,” said Andrew Mastrangelo, spokesman for Canton-based Dunkin’ Brands.
Reebok spokesman Daniel Sarro said the company is compiling a “Twitter handbook” with guidelines for employees.
“We are aware many of our employees have Twitter and Facebook accounts,” Sarro said. “It really comes down to what they’re saying about Reebok.”
Many technology companies encourage employees to use Twitter and Facebook to spread the word about new projects.
Paul Schaut, CEO of Modiv Media in Quincy, said employees are free to post online as long as they don’t leak the company’s intellectual property or offend anyone.
“Whether it’s e-mail or talking on the street, the same policies apply,” said Schaut, whose company makes portable scanning devices for grocery chains.
Internet advertising company Ando Media of Quincy pre-approves tweets by employees about major announcements on its company Twitter page, Executive Vice President Paul Krasinski said.
Employees have more leeway with their personal accounts. Krasinski estimated 80 percent of the company’s employees have personal Twitter and Facebook accounts, and it’s impossible to keep track of all of their activity.
“It’s a transparent world we live in, which enables it to be fast-paced, but it’s hard to get the cat back in the bag,” he said, adding that a handful of employees have been spoken to about inappropriate posts.
Jackson, the employment lawyer, said the best practice is to err on the side of caution.
“You may have your privacy setting on the most private level, but you just don’t know in whose hands your information will end up,” she said. “There’s no guarantee it will remain private once you post it on social media.”
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