Understanding Employment Practices Liability Risk

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Many businesses underestimate the potential risk involved with not having employment practices liability insurance (EPLI). Having a code of conduct and expertise in human resources helps mitigate most forms of unlawful employment practices, but incidents can and do still happen. Every business is exposed to employment practices liability, an area of professional liability that includes:

  • Breach of Contract
  • Sexual Harassment
  • Discrimination
  • Invasion of Privacy
  • Wage/Hour Law Violations
  • Intentional Emotional Distress
  • Wrongful Termination
  • False Imprisonment

The laws regarding these illegal practices are interpreted and enforced by the Equal Employment Opportunity Commission (EEOC), which recognizes eleven types of employment practices discrimination: age, disability, equal pay/compensation, genetic information, national origin, pregnancy, race/color, religion, retaliation, sex, and sexual harassment.

Employment practices don’t deal with just full-time employees either. Volunteers, part-time workers, contractors, customers, and vendors can all file charges against an employer for an alleged violation of these laws. With these types of charges on the rise, it is important for business owners to fully understand the laws surrounding employment practices as well as the tools needed to best protect them from potential lawsuits. For more information about employment practices liability, visit our Employer Protection resource page.

Laws Enforced by EEOC.” U.S. Equal Employment Opportunity Commission. USA.gov, n.d. Web. 16 May 2017.

Discrimination by Type.” U.S. Equal Employment Opportunity Commission. USA.gov, n.d. Web. 16 May 2017.