No employer is immune from the risks associated with operating a business. Even those who dedicate considerable efforts to embrace antiharassment policies and nondiscriminatory practices can find themselves in employee-based lawsuits. In today’s climate employment practices liability (EPL) insurance is a must-have coverage.
While EPL insurance helps employers with attorney fees and settlements related to employment practices, safeguards should be put into place to lower workplace risk. Below are suggestions to reduce potential vulnerabilities within the employee lifecycle
- Applicant screening
If applicants suspect they weren’t hired due to a condition protected by the Americans with Disabilities Act (ADA) or in conflict with the Equal Employment Opportunity Commission (EEOC), they can file a complaint. Avoid this with nondiscriminatory screening and selection measures that are valid and job-related. Employers also have a duty to vet recruiting and screening software vendors, particularly those using artificial intelligence-based tools. It’s also important to comply
with EEOC recordkeeping requirements related to recruitment and hiring in the event of an EEOC audit or investigation. - Active employment
Whether an employee has a short or long-tenured career with a company, claims of harassment, discrimination or retaliation can occur. Make sure all employment-related policies identify the various channels employees can approach to discuss concerns. Remember that disciplinary and performance review discussions should be documented and placed in personnel files should they be needed in the future. Clearly identify skills and requirements needed for promotions or advancements should a decision be challenged. The best advice to avoid an employment claim is to provide managers appropriate training and create a culture where employees feel supported. - Employment separation
On occasion, a terminated employee may be disgruntled when the employment relationship ends. Employers operating in at-will employment states should include at-will language in job offers and handbooks stating the employer-employee relationship can end without a reason. Exit interviews are also advisable so employers can
determine if there are addressable grievances. Employers should have a checklist of benefit-related items that need to be provided following termination such as unpaid vacation, COBRA or continuation of coverage notices, and conversion and portability rights.
Protect your business today. Contact Bukaty Companies Property & Casualty to get a quote on EPL insurance.
