Posted on Fri, May 07, 2010 @ 10:32 AM
The licensed advisors here at H&H just reviewed the latest figures from the US Equal Employment Opportunity Commission (EEOC), showing workplace discrimination complaints in the nation fell 2.2% in 2009. Of course, that’s good news. But, there's a downside: Employees and job applicants still filed a near-record 93,277 claims, costing employers $376 million.
It prompts us to inquire whether you've checked your “bias-o-meter recently.” That's shorthand for asking if you're doing everything you could and should be to avoid claims of prejudice against your business.
Under current law, it's illegal to discriminate against someone (applicant or employee) because of their race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability or genetic information.
It's also unlawful to retaliate against a person because he or she complained or filed a charge about discrimination.
These things can be a tough call because even when you try to be unbiased, prejudice can sneak in. Or maybe someone thought you were discriminating when you weren't.
Predictions for 2010 aren’t much better... claims for wrongful termination, race discrimination and sexual harassment are expected to increase. According to a recent survey by Hartford Steam Boiler:
- A mere 1.2% of small businesses have Employment Practices Liability Insurance
- And yet, 67% worry about discrimination or other EPLI related lawsuits
- 60% underestimate the cost of a claim
- Record claims have been filed with the Equal Employment Opportunity Council in the last two years, and
- 2010 is predicted to be a record year for EPLI claims because of higher unemployment rates, lay-offs and a “trend toward employee-friendly” laws
Of course, seeking EEOC guidance can help you reduce the possibility of an employment related lawsuit but eliminating this risk of loss entirely is unlikely. For this reason, among many others, we’ve been seeing the number of businesses purchasing Employment Practices Liability Insurance increasing significantly over the past two years.
In these times of employment hardship it's more important than ever to demonstrate a non-discriminatory approach in the workplace. Keep in mind, we’re here to help if you feel your business may be in need of EPLI coverage.
Photo by nDevilTV
Posted on Thu, Mar 18, 2010 @ 08:22 AM
Recently, we were discussing human resources issues with a client and we thought many of the ideas we were addressing might be able to help you as well. Here are a few ideas we came up with to reinforce company policies and possibly help reduce your risk of an Employment Practices Liability Insurance (EPLI) claim:
Use meetings as a reminder - You are likely to have most of your staff together for company meetings, or at least portions of the staff at different meetings, so use this time to reinforce policies that you see being abused or overlooked during the course of the work day.
Discuss before hiring - New employees should always be adequately informed of company policies and procedures upon hiring. Before ending your final interview, go over the most essential company policies, so a new employee knows before the first day of work. If you have a company handbook make sure that everyone has an updated and current edition.
Be sure you are consistent with how you handle each employee that does not follow the regulations of the company. This is essential to ensure that you do not experience any unnecessary backlash in regards to the policies.
Hopefully that helps you and your business. If you have questions (or ideas you'd like to share), let us know!
Photo by llawliet
Posted on Fri, Jan 15, 2010 @ 03:13 PM
Employment Practices Liability Insurance (EPLI) has been garnering serious attention in the past few years, and for good reason...
According to the Society for Human Resource Management, three out of five companies are sued by former employees every year. Other research indicates:
That the number of employment discrimination cases filed in Federal Court has doubled since 1992
Of all cases tried, 56% result in verdicts for the employee
The average plaintiff's verdict in employment law cases exceeds $250,000
That information alone is enough to scare many business owners into making some serious changes in how they do business. It's definitely time to investigate what changes business owners should consider making. If you were sued by an employee, what would happen? Even if you have Employment Practices Liability Insurance (EPLI), you'd still be out your deductible and, more importantly, you'd be distracted from your business to fight a lawsuit.
Here are some of the most common mistakes that lead to employee lawsuits. Are you making them?
Hiring the wrong person. Hiring is hard work and very time-consuming. The tendency is to short-cut a thorough evaluation process to get it over with. But hiring wrong means firing soon; and that means an exposure to a lawsuit.
Poor (or absent) training of supervisors and managers. Managers can have poor communication skills or be ignorant of laws governing employee treatment. If a manager discriminates against an employee, the company will be held liable.
Not asking if there's a problem. Often workplace victims and witnesses are afraid to speak up. So they use the legal system, instead of confronting management. By asking employees if there are any problems, you can solve them before they result in lawsuits.
Ignoring first signs. It's better to risk the embarrassment of asking premature questions than to suffer a lawsuit when it's too late. If you suspect or sense a problem, investigate - keep it private to those involved, but be open about your reasons.
Failing to get help. Get legal and/or human resources advice when you have a situation you're not sure about. Better to be safe than sorry.
Lawsuits can be drawn out, expensive, and distracting. If you don't have EPLI it's time to consider why you might need it. We hope you never have to face an employment practices lawsuit; however, taking the correct measures now could save you a bundle in the future. Give us a call so we can help you protect your business.
Photo by KeithBurtis