Employers face growing challenges when it comes to protecting themselves against potential lawsuits from employees. Claims stemming from improper workplace practices continue to be on the rise. There are various federal mandates that shield employees from being treated wrongly. As an employer or human resources leader, it is your job to understand how to mitigate that risk for your company.
Taking the First Step
The best way to prevent litigation from employees is to avoid any situation that may violate laws to begin with. This starts with good hiring practices. However, even the best candidates may not fully understand what is and isn’t acceptable. Having business conduct policies is essential, and training the entire workforce to them provides reinforcement. Even with that preparation, the company may find itself facing legal action.
What is EPLI?
The coverage that protects a business in these situations is called Employment Practices Liability Insurance (EPLI). There are several scenarios where this can protect a company, but here are a few examples:
- Wrongful termination
- Sexual harassment
- Hostile work environment
- FMLA violations
All companies are vulnerable to risk in these areas, regardless of size. Also, it often does not matter if the employee’s claim is valid or not. The costs of mounting a defense, even if it doesn’t make it to court, can grow quickly. Ensuring your company has the proper protection is more important than ever.