2021 TRENDS
KNOWING WHAT TO WATCH OUT FOR AND HOW TO DEAL WITH POTENTIAL ISSUES IS VITAL .
partially alleviate the responsibility of businesses . Relying on that logic is risky , however , and still requires documentation and additional protections .
Social movements are an equally problematic issue when it comes to EPL , perhaps even more so . The # MeToo movement and the Black Lives Matter ( BLM ) movement have led to an increased awareness about their respective issues . While good overall , this has also led to a huge increase in lawsuits against employers . The veracity of the lawsuits aside , the risks must be dealt with . For example , since 2017 , there has been a 50 percent rise in sexual harassment lawsuits . Organizations need to focus on offsetting some of this risk through the implementation of sexual harassment awareness programs , increased diversity , and making sure they take any allegations seriously . Even with taking those steps , however , it is not assured that no lawsuits will be filed .
Likewise , the LGBTQ + community have seen a rise in their own protections . In 2020 , the United States Supreme Court confirmed that Title VII protects gay and transgender employees from discrimination and harassment under the Civil Rights Act of 1964 . This may be a newer development in the grand scheme of things , but the court affirming those rights places a spotlight on the changing way that society looks at these protected classes .
In much the same way , age discrimination is beginning to creep its way to the forefront of workplace issues . The US Bureau of Labor Statistics has stated that the number of age 55 and up employees in the workforce will rise to 25 percent in the next four years , a significant increase from the 13 percent it sat at in 2001 . The Age Discrimination in Employment Act ( ADEA ) forbids discrimination against applicants age 40 or over and against employees in that age group . Even with those protections in place , many employees have reported discrimination based on age . That can compound into low morale , EPL claims , and a diminished reputation for the business .
Wage , leave , and salary history have also been affected by changing laws . Minimum wage , sick leave , overtime , and paid time off are all essential aspects of employment that organizations must have an understanding of . Further , the ability for employers to receive prior salary history has become a concern , and in some states , legislation prohibits employers from requesting it .
Finally , there is the issue of marijuana legalization , perhaps one of the most complicated issues on the table in terms of traditional workplace problems . The 2020 elections bore out a massive boom for marijuana legalization . Medical marijuana is now legal in 36 states and recreational marijuana use is now legal in 15 . As legalization becomes more and more common , it is also becoming more and more common for states to enact legislation restricting ( or prohibiting ) the ability of employers to conduct drug tests for marijuana .
There have been a number of court cases in employment lawsuits that have been related to marijuana use , including one case in which a disabled employee sued their employer for discrimination against medical marijuana usage . Procedures for conducting drug tests or making decisions based on marijuana usage is now beginning to become a more complex issue than it was previously .
EPL risks can take many forms . Whether it is based on social issues such as age , race , or gender or based on marijuana use , issues stemming from the pandemic , or any of a slew of others , it only takes one lawsuit to put a company in the metaphorical weeds . Taking precautionary measures ahead of time and having the right insurance in place can provide the necessary resources to defend your company against a lawsuit or to pay for a claim . +
BY : GWENYTH P . LUU , CLCS DIRECTOR - COMMERCIAL LINES JGS INSURANCE
Gwenyth Luu helps organizations improve their bottom line and lower their total cost of risk by implementing the JGS Proactive Service Platform . The JGS Proactive Service Platform is an inclusive strategy that focuses on primary cost drivers of a risk management program . Gwenyth helps businesses understand all of their potential and actual costs and liabilities , execute an actionable strategy , and deliver superior client service and support . The JGS Proactive Service Platform is driven by continuous strategy and service delivered on a daily basis throughout the year . The service platform includes risk control strategies , claims advocacy and management , contract reviews and insurance program design reviews .
15