Employment Practice Liability (EPL) litigation continues to impact employers of all sizes. Defending against EPL claims can be expensive, time consuming and damaging to a company’s reputation. The following are a few tips to protect your business or organization against EPL lawsuits:
- Job Application– The best applications do more than gather a prospective employee’s work history and educational background. They are a valuable screening tool as well as protection against litigation. To make sure that your organization is using an appropriate application consult an employment attorney.
- Employee Handbook– It is important to keep the handbook current with changes to employment laws and regulations. Have your Employee Handbook with employment policies and procedures continually reviewed by an employment attorney. Review employment policies with employees in detail and require each employee to sign off, indicating they have received a copy and had the Employee Handbook explained.
- Exit Interview– An exit interview is critical for every employee laid off or terminated. At the interview, review all issues and have the employee sign off, saying that the issues have been explained, regardless of whether the employee agrees or not.
- Purchase an Employment Practice Liability Policy– NOT ALL POLICIES ARE CREATED EQUAL AND MOST GENERAL LIABILITY POLICIES WILL NOT COVER EPL CLAIMS! Make sure that the policy is underwritten by a Best “A” rated insurance carrier and look for the following:
- Full Prior Acts Coverage / Defense outside the limits / Wage and hour cost of defense / Duty to Defend / Third Party Liability Coverage / No “Hammer Clause”. Consult with our office for additional information.
*This is intended for informational purposes only and is not to be construed as legal advice.