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liability for retaining arrested employee / convicted alarm owner / sub wants to increase limitation of liability
March 3, 2018
WEBINAR:  New York Alarm license law changes - discussion on the Employee ID cards and more
When:  March 6, 2018 at 12 noon EST
Where:  Your computer or internet connected device
Who should attend:  Alarm company owners, license holders, license compliance managers
Presenters:  Ken Kirschenbaum,Esq,  Alan Glasser, Ex Director of MBFAA, Jason Etter, NYSESA.  If you would like to be added as a presenter let me know well in advance.
Format:  Panel or round table discussion, depending on number of attendees.
Register:  register now to save your space.  Register here:  click here to register
liability for retaining arrested employee
    We are in New York.  One of our employees, who is a salesman, is in jail for the next 6 weeks. We would like to know if it is a liability to continue to employee him after he gets out.  Would doing so put the company at risk in any way? 
name withheld
    This is a question that raises multiple issues.  You need to be compliant with licensing laws as they pertain to your employees and you need to be concerned with increasing your liability.  In New York employees must be registered with the state and the state does a criminal background check.  Felons are cannot be employed unless they have a Certificate of Relief and employment can be denied for lesser offenses at the discretion of the licensing agency.  Documentation, including fingerprints have to be filed with the licensing agency within 24 hours of hiring the employee.  The licensing agency will then let the alarm company know if it can continue to employ or must discharge the employee.
    If your employee is convicted of a felony [or other crime worthy of the licensing agencies intervention] the licensing agency will notify the alarm company that the employee must be discharged.  Here you don't mention why the employee has been incarcerated.  It could be for parking tickets or unpaid alimony or child support.  This incarceration does not appear to be a license issue, yet.
    If you weren't on notice before, you certainly are now, that this employee has issues.  Why do I say that?  Incarceration is not the normal course of events for most people.
comment on convicted alarm owner
    Good one, Ken.  Nice to break it up once in a while.
sub wants to increase limitation of liability
    Have you heard of a sub wanting to exercise the 'payment for additional liability' clause and how the dealer handled it?
    Best Regards,
Bob Long
    Yes and we cover it in the Supplemental Agreement that we provide with the All in One agreements.  It's not commonly asked for and it's even rarer that a subscriber would pay for the increase in liability because the cost will be much more than insurance that the subscriber could obtain [and probably already carries].  If you stick to the 6 times monthly revenue you will be close to what you should be charging to increase the limitation.  You can also truthfully disclose to the subscriber that you are going to obtain additional insurance to cover the risk and pass that premium along to the subscriber.  It is important that you have a procedure in place for dealing with the request for the increase [which is why we provide you with the Supplemental Agreement - so you can honestly testify that you do have a form for the increase] because the right to increase has been a requirement for enforcement of the limitation in many jurisdictions for a long time.


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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
516 747 6700