Employment Practices Liability Insurance

Protect your organization against costly employment-related claims.

employment liability icon

What is EPLI?

Employment Practices Liability Insurance (EPLI) is an employers’ defense costs and losses from employment-related claims.

These claims can include wage and hour disputes, allegations of discrimination, harassment, retaliation and unlawful termination. With emerging EPL trends including social media, medical marijuana, Affordable Care Act, pregnancy accommodations, religious accommodations, and mobile electronic devices, business are at risk now more than ever.

Do I need EPLI?

Do you have employees? If so, the short answer is yes. When you have employees, you have employment practices liabilities to protect. According to the EEOC, in 2014 business paid out more than $296 million for claims brought against them for wrongful employment acts.  While many EPL claims can reach large sums up to $1,000,000, EEOC statistics showed that 81% of claims settle for an average of $22,400 – $40,000. Even a small claim can damage your business, so it’s important to protect yourself with employment practices liability insurance.

Fact:

More than 40% of EPLI-related lawsuits are filed against private companies with fewer than 100 employees

US Equal Employment Opportunity Commission

What Does EPLI Cover?

Employment Practices Liability Insurance provides protection against several kinds of employee lawsuits, including:

  • Sexual harassment
  • Discrimination
  • Wrongful termination
  • Breach of employment contract
  • Negligent evaluation
  • Failure to employ or promote
  • Wrongful discipline
  • Deprivation of career opportunity
  • Wrongful infliction of emotional distress
  • Mismanagement of employee benefit plans

The policies will reimburse your company against the costs of defending a lawsuit in court and for judgments and settlements. The policy covers legal costs, whether your company wins or loses the suit.

Ask our Diebold agents more questions about what EPLI can do for you by calling our office, or starting a quote today.

Companies large and small share the burden equally.

1. Fair Pay

Be proactive and self-audit to be sure you avoid liability related to the Fair Pay Act:

  • Does your organization have updated job descriptions that include criteria for skills, education, seniority and responsibility?
  • Does my organization assign consistent compensation to similar jobs performed by individuals with similar skills, education, seniority and responsibility?
  • Are men and women assigned projects or clients with commission/bonus potential on a consistent basis?

2. Wage Theft

Wage denial or employee benefits that are rightfully owed to employees can cost US workers as much as $50 billion annually. Wage theft can include forcing employees to work “off the books,” not providing consistent meal and rest breaks and failure to pay overtime and earned tips. Clear, consistent policies and proper manager training can help you avoid wage theft.

3. Worker Classification

Avoid EPLI claims resulting from the misclassification of contract workers by better defining their independent contractor status.

  • Review federal economic reality and state labor tests, as well as IRS guidelines for classifying workers.
  • Determine if you are classifying “contractors” and employees performing similar tasks consistently.
  • Perform misclassification audits on a monthly or quarterly basis.

4. Gender Identity and Restroom Access

Avoid restricting employees from the use of restrooms based on their fender identity. Occupational Safety and Health Administration (OSHA) suggests the following:

  • Permit employees to use the restroom associated with their fender identity.
  • Don’t ask employees to provide medical or legal documentation of gender identity to access gender-appropriate restrooms.
  • Provide additional single- and multi-occupancy, gender-neutral restrooms with lockable stalls.

5. Effective Compensation

Millennials currently make up 50% of the US workforce. As that number continues to rise – it will reach 75% by 2025 – this segment is driving a dynamic shift in pay practices from a merit-driven system to a value-based approach.

Employers who create a performance management program built on a results-driven culture that integrates compensation, rewards and performance will be well-positioned to avoid potential EPLI claims.

Ready to get started?

Getting set up with the right insurance is easier than you think. To get started, click the button below to start a quote.

Or, connect with a Diebold agent at (989) 345-0200.