Due Dilligence
Employment Practice Liability Insurance
FACTS:
In 2005, the average expense to defend an EPLI claim was $150,000.
The average class action suit settlement was between three and five million dollars
In a recent Gallop poll, 15% of the general public shared that they had been partner to some type of discrimination
Watch the bouncing median AWARD for discrimination through the EEOC:
For age discrimination: $255,000
For sexual discrimination: $186,000
Disability: $225,000
Race: $145,000
Median AWARD for discrimination through the State Court:
For age discrimination: $322,000
Race: $240,000
To secure a D&O/EPLI policy, a company must have an anti-harassment policy in place, AND IT MUST BE communicated to staff (suggest annual training).
Post 911 fears drive natural fear-----with fear, there is festering fall-out for discrimination and harassment in the workplace.
DUE DILLIGENCE...
National Origin charges are ON THE RISE.
In the next two years, commercial insurance agents should expect UNION growth for migrant workers; with the growth, expect changes in Immigration Laws and the impact on Employment Practices.
FOR ALL EMPLOYERS--- REMEMBER: IF IT’S NOT IN WRITING, IT DIDN’T HAPPEN…..DOCUMENT INSTANTLY / CONSTANTLY!
Because of changes in EEOC language, "at will" employers must be aware of changes in Title VII language: Race, Creed, Religion, National Origin, and RETALIATION.
A Retaliation Harassment Policy should be part of every corporate employee handbook.
Retaliation is the new “hot spot” for EEOC attorneys.
All employers should be critically aware of ADA compliance when interviewing. ADA issues are significant! Without an understanding of ADA rules, discrimination cases can follow the most well meaning interviewer. Be aware that tucked within ADA rules---- Accommodation IS LAW! While there is some harbor of safety for employers (depending on their size) accommodation can generate a huge (unexpected) expense. Also be aware that interview protocol is critical----develop a checklist that is used for ALL.