North Texas Dentistry Volume 8 Issue 1 NTD 2018 ISSUE 1 DE | Page 17

Over the years we’ve seen many cases in-
volving a former employee suing the
practice for back pay related to unpaid
overtime work. These allegations are
usually made by a former employee that
was paid a fixed salary for their work at
the practice who later challenges their
status as an exempt employee. This type
of allegation runs a very close second to
the allegations of sexual harassment. We
refer to this type of claim as a wage/hour
dispute and many stand-alone EPLI poli-
cies include defense cost coverage for
this. Again, the coverage is defense only
and the policy will not pay a judgment
(actual back pay, interest, and penalty)
in a wage-hour dispute but defense costs
in all EPLI claims can be significant.
As a dental practice owner, one last thing
to keep in mind is that it’s not just your
own actions that you are responsible for.
The actions of each and every employee
or contractor of the practice can lead to
EPLI allegations and it is the practice
that will be sued and the practice that
will be held responsible for the result of
those actions.
The right insurance is important but there
are other things that you can do to reduce
your risk. Make sure that your practice
has a written policy with regard to sexual
harassment. Eliminate or reduce the in-
stances in the daily practice routine where
two employees find themselves working
together alone for extended periods of
time, especially those involving a dentist
and one assistant. Simple changes can
make a big difference.
Wallace Claims Briefcase #1
Sexual harassment claims can be dra-
matic and even sordid, but others can be
somewhat innocent in nature. Some time
ago, we encountered a claim that origi-
nated from an unmarried dentist dating
one of his unmarried dental assistants.
The relationship was consensual and
continued for several months. Eventu-
ally, the dentist ended the personal rela-
tionship and the assistant left the
practice soon after. Within a couple of
months, the dentist received a letter re-
garding a possible EPLI lawsuit from an
attorney representing the former assis-
tant. The assistant claimed that she felt
pressured to engage in a sexual relation-
ship with the dentist, her boss, and that
he abused his position of authority
within the practice. The dentist refuted
the allegation contending that they were
both single adults and were not only col-
leagues but also friends outside the
practice. He further explained that the
romantic relationship had evolved natu-
rally as part of their working relationship
and personal friendship. He believed
that the allegations were a response to
her disappointment that the romantic re-
lationship had failed.
The harsh reality is that the dentist’s
position was impossible to defend. Even
assuming that the dentist’s account of
the relationship was completely factual,
the ruling of the case would still have
been in favor of the assistant. Ultimately,
the dentist’s EPLI insurer negotiated a
settlement with the assistant and her
attorney and a trial was avoided.
EPLI claims can arise from seemingly
natural human interaction (though in re-
flection here the fallacy might be appar-
ent). The point being that EPLI claims
don’t only arise in situations where
overtly inappropriate behavior is present.
Kyle Wallace has
over 30 years of
experience in the
insurance industry.
The last 20 have
been spent working
primarily with dentists,
oral surgeons and
their practices. Kyle
and his team have
built strong, and in some cases exclusive, rela-
tionships with quality insurance companies that
specialize in products for the dental community.
Kyle and his wife, Terri, own Wallace Specialty
Insurance Group – the first full service, “one stop
shop” insurance agency dedicated to helping
dentists and physicians protect themselves, their
families and their practices.
FREE VALUATION
PRACTICE
Know the value of your practice
[phone] | ADStexas.com
Jeremy Brown JD, Joe Piazza DDS, Terry Watson DDS, & Frank Brown JD
Practice Sales & Appraisals
www.northtexasdentistry.com | NORTH TEXAS DENTISTRY
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