Did you know 3 out of 5 employers are sued by former
employees? From 2001 to 2011, the occurrence of EPL discrimination cases nationwide
rose 123%. Private companies are more likely to have an Employment
Practices claim rather than a General Liability or property claim.
For reference, a company with $1 million in
sales and 50 employees can get an EPLI policy for about $7,000 a year.
One of the most common mistakes small companies make is not making
this investment and protecting themselves with Employment Practices Liability Insurance. Over 40% of all employment claims are brought against firms with
less than 100 employees. Many Federal and State employment laws apply to
employers of all sizes. The median award for EPL claims is over $325,000,
this is one risk employers cannot afford to not protect themselves against.
Despite what many people assume; Employee Practices Liability
is NOT covered in other insurance
policies such as General Liability. At Apogee Insurance Group, we offer a wide
range of EPLI markets and brokers with years of EPL expertise. To understand exactly
what kind of protection we can offer, take a look at five of the most common
types of EPL claims and examples.
Discrimination
Just
this month, a Houston
manufacturer violated federal law by enforcing a retirement policy they
thought to be reasonable. The policy, which required employees to retire
at the age of 70, was put under legal scrutiny when an employee was let go on his 70
th birthday. This policy violated
the Age Discrimination in Employment Act and employees rights to compete
fairly in the workplace regardless of age. Discrimination applies to any
protected group of individuals including, and not limited to, disability,
race, religion, sex, national origin, pregnancy and even “genetic
information.” Gender and age discrimination claims are particularly on
the rise.
Wrongful Termination
An
employee was recently awarded $3.5 million by a federal jury after he was
wrongfully terminated for reporting illegal conduct. When the employee suspected a fellow project
manager of fraud; he decided to write a letter to the company's CEO. When the
project manager in question heard about the letter, he threatened to lay
the employee off. The following week, the whistle-blower was let go and told he
was terminated to save money. The corporation had the right idea by encouraging
employees to step forward when they suspected dishonest practices.
However, one poor decision by a dishonest employee resulted in a
crippling lawsuit.
Sexual Harassment
In
February of this year, JPMorgan shelled out $1.5 million for a sexual
harassment lawsuit. The money was divided among 16 female employees who
worked at the bank’s call centers and endured sexually charged behavior
and comments from supervisory staff. Sexual harassment education is
important in maintaining a safe work environment, but sometimes all it
takes is one ill advised comment to bring your company to court.
Wage and Hour Violations
In
one of the most high profile EPL cases in the country, the Federal Court
settled a $35 million lawsuit against Walmart in July of 2009 on behalf of
workers who alleged they were deprived of meal and rest breaks and forced
to work off the clock at Walmart stores. This particular case not only
was a huge financial loss but also permanently damaged Walmart’s
reputation.
Emotional Distress
In
2007, a woman who worked in a bank had an encounter with a bank robber.
The robber was armed with a weapon created an extremely traumatic
situation for the employee. In the months following the incident, the
employee suffered from PTSD including symptoms of anxiety, irritability,
sleeplessness and panic attacks. Supervisors at the bank made the
situation worse for her by bringing up the incident on a consistent basis
and teasing her for her PTSD symptoms. She was eventually compensated for
months of emotional distress.
EPL claims can happen to anyone. Don’t let employers go
unprotected, fill out an EPLI application today.
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