September 2025
This insurance covers the employer’s legal defense costs, settlements, and sometimes judgments if claims arise. The coverage typically includes:
Wrongful termination
Discrimination and harassment
Retaliation
Other issues like failure to promote or emotional distress
EPLI gives businesses financial protection and peace of mind—so even when disputes arise, they are better managed without risking the company’s stability.
The Role EPLI Plays with Best Practices
EPLI is not a replacement for good management - it’s a safety net if something goes wrong. Think of it this way: If a wrongful termination claim arises, having clear documentation, policies, and performance records boosts your defense—and EPLI can help cover legal costs.
If a wage-and-hour class action (or PAGA claim) arises, strong internal practices and legal compliance help avoid liability—and EPLI may help with defense where covered.
If a harassment claim shows up, a prompt and fair response backed by a supportive culture can diffuse the situation early—and EPLI helps with any resulting legal expenses. EPLI is the safety net, but smart employment practices are the real foundation for loyalty and trust.
A Quick Look at West Coast Trends
PAGA complaints: Over 5,000 filed in 2023 — a 20% increase from 2022.(California)
Wage-and-hour class actions: Significant rise, especially over overtime/pay cal- culation error (Washington).
Discrimination charges: Retaliation: 2,549; Sex: 1,778; Disability: 1,716; Race: 1,651 (California numbers for 2024).
In The End
Running a pallet business means juggling lots of tasks — hiring, wages, safety, and employee morale. To stay out of legal trouble:
Set clear policies and train your staff.
Keep good records of all decisions and reviews.
Audit wage and hour practices.
Promote a respectful, safe workplace.
Use EPLI to protect against costly employee claims—but don’t rely on insurance in place of good management.
A safe and fair workplace isn’t just a legal advantage—it’s a smart business move. When employees feel secure and valued, they work better—and don’t file lawsuits.
WPM