Employee lawsuits are a risk that employer’s need to be ready for. Employment Practices Liability Insurance (EPLI) is specifically designed to defend against employee claims.
EPLI claims are on the rise, and attorneys are always on the hunt for an EPLI case. The TV ads aren’t going away soon. Nor are the billboards. Everyone has seen that smiling face on the billboard:
“Injured in a car accident or at work? Wrongful Termination? Discriminated against? CALL US!” … or words to that effect.
EPLI claims can come from various situations which include but are not limited to:
- Sexual Harrassment
- Unfair Hiring Practices
- Discrimination in the Workplace
- Wrongful Termination
- Failure to Pay Required Benefits or Overtime
- Failure to Provide Promised Vacation or Other Time Off
Recently, one of our EPLI carriers, ABA Insurance, sent us an email article covering some EPLI Issues. Here is a quote from the article:
From ABA Insurance
Wage and Hour in the Workplace – What NOT to do!
You and your clients want to be a flexible business owners when it comes to determining employee compensation. You want to be fair to full-time, part-time, and temporary employees. However, be careful – as being too flexible or engaging in what you believe are fair practices can unknowingly violate the Fair Labor Standards Act (FLSA). Lawsuits, including class actions, alleging FLSA violations are becoming increasingly common. The FLSA imposes statutory damages and the lawsuits are expensive to defend. Employee compensation can still be tailored to specific employment arrangements, but you should consider adequately researching the issues and/or consulting an HR expert or employment lawyer.
Here are some tips on avoiding the common pitfalls of wage and hour laws:
- Don’t classify employees as exempt in an attempt to avoid paying overtime
- Don’t allow non-exempt employees to set their own schedules or allow for flexible lunch hours or breaks
- Don’t allow substitute comp time for overtime
- Don’t allow non-exempt employees to work during non-business hours
- Don’t withhold a former employee’s paycheck even if the employee hasn’t returned company property
- Don’t withhold a former employee’s earned vacation pay
end of ABA email
All of these are excellent pointers to avoid an Employment Practices lawsuit.
What Else Can An Employer Do to Protect Themselves?
At EmployerNomics, we specialize in transferring the liabilities and risks of being an employer away. We believe in making it “Somebody Else’s Problem.”
Contact us using the form below or call us at 407-490-2468 to find out more.