News

20 Dec 2016

EEOC Statistics And Recent EPL Suit Trends

In today’s increasingly litigious society, businesses must be extremely careful to follow the law and protect themselves in case they are sued. Employees can sue employers for unlawful termination, harassment, discrimination and a host of legitimate or frivolous reasons. Employment liability lawsuits continue to rise year-over-year. The best way to protect your clients is by having a comprehensive Employment Practices Liability (EPL) Insurance policy. Insurance protects business’s financial interest if they become targets of an employment liability lawsuit. Taking steps to prevent these lawsuits is also important. Resolving EPL claims is unusually time-consuming (resolution can take up to 2 years.) Defending against these lawsuits is expensive (as much as $300,000.)

Educate yourself on top reasons EPL claims are filed, so you can educate your clients. There are more than 50 Equal Employment Opportunity Commission regional offices in the United States. Employees in each office are authorized to file suits in state and federal courts. In short, there are plenty of people willing and able to pursue legal action against businesses accused of violating EPL lawsuits.

Pregnancy Discrimination

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 pregnancy is a top agency enforcement priority.

Sex-based Discrimination

Title VII prohibits employers from discriminating against job applicants or employees based on their sexual orientation or gender identity. As more individuals go public about the fact that they are transgender, LGBT-related sex discrimination claims will continue to increase. According to the EEOC, examples of transgender discrimination include: failing to hire an applicant or promote an employee because he or she is transgender, firing an employee because he or she is planning a gender transition, denying employees access to the restroom corresponding to their gender identities, and harassing employees by persistently and intentionally failing to use their desired name and gender pronoun.

Religious-Dress Discrimination

It is illegal to discriminate against employees or applicants because of apparel, accessories, hairstyles, or beards they wear that are symbolic of or required by their religion. There are exceptions to this rule. Employers are allowed to prohibit attire or adornments that create a safety hazard at work, require individuals to show their faces so they can be identified, and enforce a reasonable dress code in the workplace.

About Euclid Exec

Employers face myriad risks. Euclid Exec’s standalone EPL policy offers strong protection against the increasing risk of expensive employment liability lawsuits. For more information on our state-of-the-art EPL policy, through Lloyd’s of London, call Euclid’s senior underwriter/EPL program director, Jason Binette, at 630.294.2276. We’re able to write risks up to 5,000 employees, in all 50 states, on a primary basis with policy limit options ranging from $500K to $5M.