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employment practices liability insurance, sexual, racial, discrimination, harassment, liability insurance, EPLI, employment liability, sexual harassment

 

 

So what are the risk factors for employment practices liability ("EPL") actions?

bullet"Wrongful Termination" is the most often reported claim issue.
bullet"Discrimination", "Harassment" and "Humiliation" are not far behind!
bullet"Retaliation" is often cited, particularly in cases where another issue has previously been reported to management.  The complainant then alleges that not only was the initial complaint ignored, he/she subsequently suffered further due to having  complained in the first place.

Damages and related expenses in EPL cases often include:

bulletBack-pay & future-pay.
bulletHiring, reinstatement, promotion, including "reasonable accommodation".
bulletMental anguish, and/or emotional distress.
bulletPunitive damages (occurs in approximately 33% of all plaintiff awards).
bulletPlaintiff's court costs, expert fees, and sometimes also legal fees.
bulletLoss of productivity.
bulletNegative publicity.

employment practices liability insurance, sexual, racial, discrimination, harassment, liability insurance, EPLI, employment liability, sexual harassmentAnother important issue for employers to remember is that EPL actions can be brought not only under Federal Law (commonly referred to as Title VII), but also under the widely varying laws of each of the 50 states, as well as many local and county ordinances.

When it comes to EPL issues, ignorance is NOT bliss!  Employers are frequently found liable for the actions of their supervisors, even if they are unaware of the problem!

A few examples of recent claim scenarios:

bulletA national retail chain found themselves at the wrong end of a $3.5 Million jury verdict, after a paraplegic job applicant was not hired, being told that the store, "had no openings for a person in a wheelchair."
bulletA manufacturing company was hit with a judgment in excess of $1 Million, when a worker in their shipping department sued for racial harassment, based upon repeated "jokes" and racial slurs.
bulletA female member of a mining crew sued her employer under both State and Federal law, alleging a hostile working environment.  While her employer was successful in defending itself on the Federal claims, they were not as fortunate under the State law claims.  Judgment for the plaintiff was entered for approximately $150,000.  Defense costs exceeded the damages in this case!
bulletAn employee was awarded $375,000 after his employer refused to grant him 12 weeks of leave, guaranteed under the Family Leave Act of 1993.
bulletA professional firm was hit with a $900,000 award, when a female employee claimed that her supervisor had sexually harassed her, along with a number of other employees, and that she was retaliated against after she complained to senior management.

employment practices liability insurance, sexual, racial, discrimination, harassment, liability insurance, EPLI, employment liability, sexual harassmentSo, you still think this could never happen to you?  You think that your employees like you too much to make such a claim?  Your company is just, "one big happy family?"  THINK AGAIN!  Click here for more information, or give us a call at 877-320-4061.

 

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Copyright 2002, Bruce R. Swicker, "The professional's insurance professional!"  All rights reserved.