As an employer, it’s important to stay aware of the claims costs and how they are rising. The top trending employment practices in litigation cases are seemingly increasing. To avoid these claims and decrease costs, take care of your employees in a fair way. Make sure you’re protected with Staffing Agency Employment Practices Liability Insurance policy.
According to an article in Insurance Journal, unfair work practices include genetic and pregnancy discrimination, unpaid internships and illegal background checks.
Genetic and Pregnancy Discrimination
The Genetic Information Nondiscrimination Act of 2009 makes it illegal for employers to ask about an employee’s family medical history and any genetic information. The Pregnancy Discrimination Act of 1964 prevents employers from discriminating against pregnant job applicants, and requires employers to let pregnant employees continue working as long as they are physically able.
In 2013, the EEOC implemented a strategic enforcement plan to curtail discrimination in six key areas. Cracking down on discriminating based on genetics or pregnancy are two of the agency’s enforcement priorities.
Department of Labor rules govern whether an employee should be classified as an intern or an employee. Companies accused of shirking their legal responsibilities by incorrectly classifying employees as interns can be sued. If you use unpaid interns, ask yourself these questions: Are you providing those individuals educational benefits? Are you assigning them jobs that your paid employees would otherwise be doing? Are your guaranteeing them paid positions when the internship ends? If you can answer “yes” to the first question and “no” to the other two questions, you’re probably in compliance with the Fair Labor Standards Act. Otherwise, it’s time to reconsider that “unpaid internship” label.”
Illegal Background Checks
EPL lawsuits involving illegal background checks are on the rise, too. To ensure your business isn’t sued, make sure you comply with the Fair Credit Reporting Act; if you conduct a background check on one applicant, conduct one on all applicants; and notify applicants in writing before requesting their credit reports (you must tell them their credit report will be considered as part of the hiring process.)
About World Wide
At World Wide Speciality Programs, we make sure to be the leader in protecting your business. Our Employment Practices Liability claims are designed to protect your staffing firm from an applicant or employee claims. Not only do we provide coverage to in-house employees, but we also provide coverage for contract employees as well. Our coverage policies include, but are not limited to, coverage for workplace torts, individual policies, and duty to defend.