The Importance of Staffing Agency EPL Coverage

Temporary Staffing Agency Employment Practices Liability Coverage

The Importance of Staffing Agency EPL Coverage

A southern California worker is suing a major temporary employment agency over compensation for time spent preforming job related functions. As an employee of the temporary staffing company the claimant was required to perform specific placement preparation tasks. These tasks included driving for over 2 and a half hours to be finger printed and spending an hour in an interview for a potential assignment. The claimant filed a class-action lawsuit with the San Diego Superior Court against her former employer in March of this year that is not expected to yield more than $5 million in claim reimbursement, however the principle of the allegations are worth some examination. The case will essentially centralize around discussion about the types of employee activities that should be compensated by an employer, while her contract with the company itself will also play a hug role in establishing if she is entitled to compensation or not. This situation is just one example of how important employment practices liability insurance, or Staffing Agency EPL Coverage is.

As a contracted employee of the staffing entity, the agency is required to follow all employment practice regulations including compensation for work related activities performed by an employee. The staffing industry is incredibly susceptible to employment practices disputes by nature. These disputes can arise from a vast variety of situations spanning in-house and external factors. As we discussed in a previous post, complaints from a placed employee about their new workplace can be directed to you as their primary employer, also increasing the need for Staffing Agency EPL Coverage.

Even if no wrongdoing is found on the part of the San Diego based staffing firm, the costs accrued by such a suit can reach surprising heights. Mitigating your company’s risk exposure to employment practices starts with obtaining the best temporary staffing agency employment practices liability coverage available to the industry.

At World Wide our Staffing Agency EPL Coverage Policies extend to non-employees subject to workplace environments. It also protects against claims brought on by clients for a placed employee’s actions in their workplace. We offer the most extensive portfolio of Staffing Industry Insurance and Risk Management services in the business. Let us protect you. Call us at (877) 256-0468 for more information about any of our offerings.