The number of lawsuits filed by employees against their employers has been rising. Most suits are filed against large corporations, no company is immune to such lawsuits. As the total number of lawsuits against employers increase, so do the number of suits against smaller companies.
Prevention is still the best insurance. You can proactively take steps to reduce the likely hood of suits by educating your managers and employees so that you minimize problems in the first place:
- Have effective hiring and screening programs to avoid discrimination in hiring.
- Post corporate policies throughout the workplace and place them in employee handbooks so policies are clear.
- Be sure employees know what steps to take if they are the object of sexual harassment or discrimination.
- Make sure supervisors know where the company stands on what behaviors are not permissible.
- Document complaints, incidents and reports and especially the steps your company is taking to prevent and solve employee disputes.
However, despite your best efforts, your organization can still be sued. Typically employment practices liability insurance covers many kinds of employee lawsuits, including claims of:
- Sexual harassment
- Wrongful termination
- Breach of employment contract
- Negligent evaluation
- Failure to employ or promote
- Wrongful discipline
- Deprivation of career opportunity
- Wrongful infliction of emotional distress
- Mismanagement of employee benefit plans