EMPLOYMENT PRACTICES LIABILITY
social media outrage , and riots have brought racial injustice to the forefront . This will undoubtably impact employment relations , market development , and underwriter response . However , it is unknown exactly how claims or other insurance impacts will materialize .
3 . # METOO .
Founded in 2006 , the # MeToo movement gained momentum over the next 10 years as an anti-sexual harassment slogan and focused on exposing unacceptable predatory behavior in the workplace . Sexual harassment claims continue to be one of the most common employment issues employers face , despite being the most frequently written policy and most common training offered to managers , supervisors , and employees . In fact , in states like California , employers with 50 or more employees are required to provide two hours of sexual harassment prevention training to all supervisors every two years .
The # MeToo movement also arguably coincided with a change in strategy by the US Equal Employment Opportunity Commission ( EEOC ), which began conducting outreach events and training seminars and created a “ harassment prevention action team .” Following these actions , the number of sexual harassment lawsuits filed against employers increased by 50 %.
The EEOC also recovered $ 70 million for sexual harassment victims in 2018 , almost $ 25 million more than the prior year . And legislative changes making it easier to file claims that took place at the state level . For example , in 2019 , New York changed the definition of harassing conduct from “ severe and pervasive ” to more than a “ petty slight and trivial inconvenience .”
The # MeToo movement has shown that companies must be ready to quickly address sexual harassment , assault , and discrimination in the workplace . However , on the flip side , how a company reacts to sexual harassment claims may give rise to EPL counterclaims made by the accused .
4 . EQUAL PAY AND WAGE LAWS .
Pay history is an example of state-level legislation having an impact on EPL claims . For example , Illinois amended its Equal Pay Act effective September 29 , 2019 . The changes preclude employers from requesting or requiring wage or salary history from an applicant as a condition of being interviewed , considered , or hired . Employers cannot screen applicants based on their current or prior wages or salary histories or obtain an applicant ’ s wage or salary history from any current or former employer .
5 . TRANSGENDER EMPLOYEES .
The EEOC has previously issued guidance stating that discrimination and harassment based on gender identity or gender expression violates Title VII of the 1964 Civil Rights Act as it relates to sex discrimination . And on June 15 , 2020 , the US Supreme Court determined Title VII did indeed protect gay and transgender workers from workplace discrimination . It remains to be seen how this will impact EPL claims .
6 . AGE DISCRIMINATION .
The Age Discrimination in Employment Act prohibits age discrimination against employees and applicants age 40 or over . But in a recent study , insurer Hiscox found that 21 % of US workers have experienced discrimination in the workplace because of their age .
The number of discrimination charges filed with employers and the EEOC by workers age 65 and over doubled during the period from 1990 to 2017 — and demographic trends are likely to cause this number to continue to increase . According to the US Bureau of Labor Statistics , workers age 55 and up will make up 2 % of the US workforce by 2024 , compared with 13 % in 2001 .
7 . WAGE-AND-HOUR CLAIMS .
In wage-and-hour claims , an employee alleges that his or her employer has failed to pay overtime wages . In recent years , a number of high-severity wage-and-hour claims have been filed on a class action basis . Additionally , the scope of allegations continues to broaden , with lawsuits increasingly alleging denial of wage supplements or wage benefit claims under state or local laws that mandate paid sick days or other paid time off .
State and local governments are also enacting more and more legislation around the minimum hourly wage , the classification of employees as hourly or salaried , and the classification of individuals as independent contractors or employees . California ’ s rewriting of independent contractor rules , effective January 1 , 2020 , is the most recent example of the last trend .
8 . MEDICAL AND RECREATIONAL MARIJUANA .
Growth in the cannabis business has corresponded with increased sector employment , making it one of the fastestgrowing job markets in the country . The number of job openings within the industry at the end of 2018 was up 76 % over the prior year , and cannabis is projected to hit a job creation rate of 110 % in just three years , from 2017 to 2020 , eclipsing that of other high-growth sectors .
Today , EPL insurance is available as either a stand-alone policy or endorsement to another form . It provides protection against many kinds of employment-related claims , including the “ big three ” of sexual harassment , discrimination ( based on religion , age , ethnicity , gender , disability , skin color , sexual orientation , or race ), and wrongful termination . Also typically covered are :
• Breach of employment contract
• Negligent evaluation
• Negligent compensation
• Failure to employ or promote
• Wrongful discipline
• Deprivation of career opportunity
• Emotional distress or mental anguish
• Invasion of privacy
Most EPL policies will provide for legal defense or reimburse a company for the costs of defending a lawsuit in court , as well as for judgments and settlements , with legal costs covered regardless of a
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