Managing a workforce of any size carries exposure to legal claims made by employees. Employment liability claims can be based on a variety of issues such as a hostile working environment, unfair hiring practices, discrimination, and improper classification of job status. Discrimination is a particularly prevalent type of claim that employers need to be conscientious of.
It’s imperative for employers to adopt policies designed to promote fair and statutorily compliant employment practices. It’s especially important for employers to take active measures to ensure that policies are followed consistently. In addition, employers need to maintain comprehensive insurance coverage aimed at addressing claims related to employment practices liability.
Examples of Employment Liability Claims
Employment practices liability claims can take on many forms. The following are examples of actual claim scenarios from Axis Insurance Services:
- An employee claimed that derogatory remarks made on an online bulletin board resulted in defamation and emotional distress.
- An employee claimed that she was sexually harassed when coworkers said that she was having a sexual relationship with a colleague and asked her inappropriately sexual questions about her personal life.
- An employee was allegedly terminated for complaining about not being paid due overtime. A second employee discussed the situation with upper management and claimed that he was improperly terminated as a result.