Staffing Agency EPLI Claims Expected to Rise in 2015
The U.S. Equal Employment Opportunity Commission (EEOC) recently settled a lawsuit against two American staffing firms for discriminating against employment candidates based on race and national origin. The two firms will face $580,000 in resolution of the charges brought by four former job applicants who filed a lawsuit for a class of African-American and non-Hispanic applicants alleging the both companies failed to place or refer those applicants for job placement in the company’s Memphis facilities.
In addition to the $580,000 damages fees, the EEOC has ordered the companies to requires the companies to provide four hours of training annually on race, retaliation, and national origin discrimination to all managerial employees in its six facilities in Tennessee and the Northern District of Mississippi. They have also been ordered to revise their application and applicant selection process for walk-in candidates. This is just one of many employment practices cases emerging through out the country.
Employment practices lawsuits are on the rise in the United States, due in part to the ever evolving regulation that is the Fair Labor Standards Act (FLSA). However, not all employment practices cases are as transparent as discrimination. In fact, the vast majority of employment practices legal battles involve wage and compensation disputes instead. According to experts, in some states wage and compensation violation disputes make up nearly half of all employment related lawsuits filed. The combination of the complexity of FLSA standards as well as the policy’s constant evolution has led to millions of businesses violating FLSA without even realizing it, including staffing agencies.
Can employment practices liability (EPL) claims be prevented, or are some violations simply inevitable based on the ever changing policy reform? There are many things staffing firms can do to prevent EPL claims the most important of which is to stay current and fully up to date will all pending and approved regulatory changes. Furthermore it is always important that staffing professionals ensure that their operation is fully adhering to such policies and guideline through their hiring, compensation and other employment services.
The staffing industry faces challenge and risks unique to their niche services and profession. At World Wide Specialty Programs we specialize in ensuring that staffing industry members receive the most complete coverage available. Our Staffing Agency EPLI coverage is designed to help protect firms from bearing the financial burden of litigation. To learn more about Staffing Agency EPLI and all of our offerings, we invite you to give us a call today at (877) 256-0468.