Employment Practices Liability Insurance
Let’s protect your organization against costly litigation.
Know the Most Common EPLI Trends to Avoid Risk
Know the Most Common EPLI Trends to Avoid RiskWhen you know the trends in EPLI claims, you can put together a plan to reduce your exposure.Next :Fair Pay
Avoid liability related to fair pay and the Equal Pay Act. Be proactive and self-audit:
Next :Wage Theft
- Does my organization have up-to-date job descriptions that include criteria for skills, education, seniority and responsibility?
- Does my organization assign consistent compensation to similar jobs performed by individuals with similar skills, education, seniority and responsibility?
- Are men and women assigned projects or clients with commission/bonus potential on a consistent basis?
Wage denial or employee benefits that are rightfully owed to employees costs U.S. workers as much as $50 billion annually. Avoid wage theft by writing clear and consistent policies and by training managers on the most common wage theft violations including:
Next :Worker Classification
- Forcing employees to work “off the books”
- Not providing consistent meal and rest breaks
- Failure to pay overtime and earned tips
Avoid EPLI claims resulting from the misclassification of contract workers by better defining their independent contractor status.
- Review federal economic reality and state labor tests, as well as IRS guidelines for classifying workers.
- Determine if you are classifying “contractors” and employees performing similar tasks consistently.
- Perform misclassification audits on a monthly or quarterly basis
Gender Identity and Restroom Access
Avoid restricting employees from the use of restrooms based on their gender identity. Occupational Safety and Health Administration (OSHA) suggests the following:
Next :Effective Compensation
- Permit employees to use the restroom associated with their gender identity.
- Don’t ask employees to provide medical or legal documentation of gender identity to access gender-appropriate restrooms.
- Provide additional single- and multi-occupancy, gender-neutral restrooms with lockable stalls.
Millennials currently make up 50% of the U.S. workforce. As that number continues to rise — it will reach 75% by 2025 — this segment is driving a dynamic shift in pay practices from a merit-driven system to a value-based approach.
Employers who create a performance management program built on a results-driven culture that integrates compensation, rewards and performance will be well positioned to avoid potential EPL claims.
Common EPLI Trends
In the last two decades, the frequency of Employment Practices Liability (EPL) lawsuits has risen an astounding 400%. In 2016, the Equal Employment Opportunity (EEOC) took on 97,443 charges of retaliation and discrimination, and obtained $482 million in awards for employees, with age, race and disability among the top three complaint categories.
Employers must be vigilant when it comes to protecting themselves against claims of discrimination. Having the right EPLI coverage is a first step.