Get A Quote Contact Us Home Page
  • Home
  • Get A Quote
    • AutomobileImage of right arrow
      • Auto Insurance Quote
      • Auto Quote Form (short)
    • Farm
    • Flood
    • Health
    • Homeowners
    • LifeImage of right arrow
      • Life Insurance Quote
      • Term Life Insurance Quote
    • Motorcycle
    • Other
  • Customer Service
    • Online Account Access
    • AutomobileImage of right arrow
      • Request ID Card for Auto Policy
      • Request Declaration and Coverages Page for Auto Policy
      • Add Vehicle to Existing Auto Policy
      • Remove Vehicle from Existing Auto Policy
    • Business & CommercialImage of right arrow
      • Request ID Card for Commercial Auto Policy
      • Request General Liability Certificate of Insurance
    • Other
  • Blog
  • Resources
    • Secure File Area
    • Refer a Friend
    • Important Links
    • Insurance Glossary
    • Frequently Asked Questions
  • About Us
    • About Clark Insurance Group
    • Our Locations
    • Employee Directory
    • Privacy Policy
  • Contact
    • Contact Us
    • Join Our Newsletter
Home > Blog > How to reduce risk in employment decisions
WEDNESDAY, JANUARY 20, 2016

How to reduce risk in employment decisions

factory-scene-employers
Take action to reduce risk in employment decisions.

Misunderstandings can lead to disastrous consequences for your company, but there are things employers can do to protect your business. Imagine these scenarios:

  • A manager terminates an employee based on negative performance evaluations. The terminated employee sues the employer for pregnancy discrimination, alleging she was fired based on her pregnancy and leave of absence.
  • The Equal Employment Opportunity Commission sues a manufacturing company for race and gender discrimination in their hiring procedures. The EEOC alleges Asian applicants were turned down for all positions except administrative ones.
  • A former employee alleges that after he informed his employer of the need for a kidney transplant, he was terminated.

Even if the employers in these examples were completely innocent and the allegations are unfounded, they may nonetheless incur significant defense costs. What would your company do if these claims were filed against it? Would your company have the resources to pay for litigation costs that may take months or even years to resolve?

HOW DOES INSURANCE FIT IN?

Employment practices liability insurance (EPLI) protects your company against the financial consequences of employment-related lawsuits and from allegations that an employee’s rights were violated. Lawsuits can result in defense costs and possible state or federal fines and penalties if your company is found liable. Complaints and charges could be brought by past, present or prospective employees.

Allegations could include:

  • Wrongful termination of employment
  • Wrongful failure to employ or promote
  • Failure to create and provide workplace employment procedures
  • Violations of the Family and Medical Leave Act, Americans with Disabilities Act, Age Discrimination in Employment Act and Title VII of the Civil Rights Act
  • Wrongful retaliation
  • Breach of oral or written employment contracts

Top-trending employment practice claims also include:

  • Pregnancy discrimination
  • Illegal background checks
  • Health-related employment discrimination
  • LGBT gender identity discrimination
WAYS TO REDUCE RISK

Take action to mitigate the risk in employment decisions:

  • Discuss employment practices liability insurance with your attorney, risk manager and local independent insurance agent.
  • Minimize the risk of lawsuits by educating your managers and employees.
  • Create employment procedures that extend from pre-employment all the way to termination and beyond.
  • Maintain accurate and thorough documentation regarding any employment action that occurs, including steps your organization takes to prevent and solve disputes.
  • Develop an employee handbook detailing company policies for discipline, termination and prevention of sexual harassment and discrimination in the workplace.
  • Ask interview questions that are nondiscriminatory when recruiting and selecting talent.

Employee-related complaints, charges and allegations could seriously damage the reputation and bottom-line results of your company or organization. Take action. Seek advice from your attorney and your risk management team at Clark Insurance Group.

Posted 9:09 AM

Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2020
  • 2017
  • 2016
  • 2015


View Mobile Version
 
  • Cincinnati
  • Pekin
  • Indiana Farmers
  • Progressive
  • Auto Owners
  • Frankenmuth
  • Encompass
 
Social Media
HELPFUL LINKS: Home About Us Get A Quote Blog Contact Us Honest – Knowledge – Integrity.
© Copyright Clark Insurance Group. All rights reserved. Powered by Insurance Website Builder
Automobile Insurance Homeowners Insurance Business Insurance Life & Health Insurance
Find Us on Facebook Follow Us on Twitter Connect With Us On LinkedIn RSS