EPLI Claims That Can Arise in the Hiring Process

Jumping right into an employment practices liability insurance claim is not usually on anyone’s to-do list for the day. They take time, effort, money and resources. And if you don’t have even one of those things, consider yourself out of luck.

A lawsuit for anyone is crushing. When a workplace is involved, it can mean the end of a company. Say goodbye to your clientele, confident employees and your quick turnaround. Without a solid reputation backing your business, things can go south quickly. Next thing you know, the negative reviews are racking up. Maybe it’s even happening on Facebook. How did this happen?

There are some key components that should be focused on: if you can make the interview, hiring and onboarding process as smooth as possible, there’s a better chance that you’ll retain a quality employee for a long period of time. When you have a happy employee, you have an employee who’s less likely to sue.

There’s no reason to stress about the “what ifs.” Any hiring manager has a job that they have to focus on. If you’re aware of the kind of EPLI claims that a staffing agency can face, it’ll make going through the hiring process a lot faster. These are the EPLI claims that can arise in the hiring process, via AmTrust Financial.

The Trends That You Should Know

A 2014 Advisen study found that trying to defend yourself or an employee in the event of a lawsuit can be as costly as $300,000 with a timeline as long as 24 months. That’s time and revenue that no one can afford to lose. That kind of money is enough to make someone go under. Here’s the employment practices liability insurance claims that you need to be aware of:

  • Invasion of employee privacy – Employees are often monitored at work. This is an employer right, however, employees have rights as well. Employees can sue an employer for situations that arise concerning secret monitoring or accessing social media  accounts. While it’s not illegal to ask for a LinkedIn profile, it is to ask for other socials.
  • Illegal background checks – Written consent always should be given for a background check. If you conduct one without an employee’s knowledge, you could be in hot water for it.
  • Pregnancy discrimination – Just because someone is pregnant doesn’t mean you treat them differently. That kind of attitude can prove to be detrimental in an EPLI claim.
  • Genetic discrimination – Genetic information can’t be a factor as to why you don’t hire someone. So don’t even think about it.
  • Unpaid internships – Defining who is an employee and an intern is essential because employees have to adhere to the Fair Labor Standards Act. As employment laws continue to evolve with the years, it’s important to pay attention to how things are going to change. With change comes adaptation. If you’re not covered from an employment practices liability insurance claim, be aware that the costs could be more than $500,000.

About World Wide Specialty Programs

For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (800) 245-9653 to speak with one of our representatives.