Insurance agents are offering comprehensive EPL (employment practices liability) insurance to their clients, but according to a recent article it appears that employers fear firing even when a firing is warranted. And with good reason. The Business Week article (see here) chronicles an increasingly hostile legal environment for employers.
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It has never been easier for U.S.workers to go to court and allege that they've been sacked unfairly.
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Lawmakers have steadily expanded the categories of workers who enjoy special legal protection
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Once a case is in court, it's expensive
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The fear of firing is particularly acute in the HR and legal departments
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Regular, and accurate, evaluations are critical
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Fairness in the courtroom is an additional issue:
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A company can easily spend $100,000 to get a meritless lawsuit tossed out before trial. And if a case goes to a jury, the fees skyrocket to $300,000, and often much higher.
And retaliation is becoming one of the most significant exposures:
Plaintiffs are winning large sums not because a company discriminated against them, but because the company retaliated when they complained about the unproven mistreatment… In 2005 and 2006, retaliation claims represented 30% of all charges individuals filed with the Equal Employment Opportunity Commission
Proper HR processes can go a long way towards mitigating the exposure. Evaluations are only one example. And EPL insurance is low-cost protection against lawsuits, particularly those without merit.
eSpecialty Insurance is your specialty insurance expert. We have developed a streamlined marketplace to provide multiple proposals from a range of competitive insurers, along with expertise to help you evaluate your exposures and choose the best combination of comprehensive coverage and price. We look forward to working with you.
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