24 WESTERN PALLET
How to best prepare your company against wrongful termination and hiring discrimination lawsuits
Employment practices coverage might be right for your company
In the last two decades, the frequency of employment practices lawsuits has risen an astounding 400%, according to WPA-associate member HUB International. Employees must be vigilant when it comes to protecting themselves against claims of discrimination and having Employment Practices Liability Insurance (EPLI) is a good first step.
“It has been my experience that many companies in the wood pallet industry don’t carry employment practice liability coverage,” Brian King, Vice President, HUB Healthcare told Western Pallet Magazine.
As a result, he said, employers reluctantly hang onto problematic employees because they fear being sued for wrongful termination. This reluctance often leads to bad workplace culture and lower production due to a perceived lack of leadership on the owner’s part. “I see and hear a lot of fear about wrongful termination suits.”
“It is important to note,” King continued, “an employer doesn’t have to do anything “wrong” to be sued for wrongful termination. They just have to be accused of wrongdoing. When letting an employee go, we have seen claims based
on alleged discrimination, alleged retaliation, or status as an “alien”, for example.”
Employers can also be sued for not hiring someone. Discrimination suits can arise when an employer doesn’t hire someone over the age of 40 or of gender or race that they allegedly won’t hire. “A good employment practices liability policy will afford some protection against this sort of allegation,” he said.
Most insurance companies will also provide a Human Resources service to their clients as part of their EPLI coverage. While various insurance carriers may offer different services, almost all have advice lines to help you set up proper documentation around employee issues and employee discipline leading up to termination. “This is of great benefit to the employer should they, in fact, be sued,” King said. “They would have proper documentation regarding what led to the termination, the steps that were taken to develop the employee prior to their being terminated, and what the outcome of that training was.”
All employment liability policies are written differently, King noted. Each has exclusions and coverages and is it important to work with an experienced broker to make sure a comprehensive policy is being purchased.
To read HUB’s checklist, Six Strategies to Avoid Employment-Related Lawsuits, click here.
Sacramento, California-based Brian King is Vice President, HUB Healthcare. HUB International is a WPA associate member.
Prepare Your Company Against Wrongful Termination and Hiring Discrimination Suits