Financial Lines

Employment Practices Liability

Hiring employees lets businesses accomplish more, and many organizations would be unable to operate without employees. Bringing workers on board also exposes businesses to certain risks, for anyone who’s considered for a position or hired could claim they were illegally discriminated against in the workplace.

Employers face a rising tide of employment practices litigation alleging discrimination, sexual harassment, retaliation, workplace violence, and other torts. Employment practices liability insurance helps protect against a variety of potential employment-related allegations, including Title VII of the Civil Rights Act of 1964, the ADA (Americans with Disabilities Act) of 1990, the Civil Rights Act of 1991, ADEA (Age Discrimination in Employment Act) of 1967, and Family and Medical Leave Act (FMLA). The Equal Employment Opportunity Commission(EEOC) interprets and enforces these laws.

Policies can be adapted to meet businesses’ unique risk mitigation needs, and they also can be used to safeguard nonprofits from discrimination allegations made by volunteers.

Key Considerations

  • Hiring managers ask prohibited questions during interviews
  • Human resources runs background checks on applicants without telling them
  • Female employee discover they’re paid less than equally qualified male colleagues
  • Interns perform work that requires compensation but are unpaid
  • Elderly employees are let go because of their age