1. It may be illegal for an employer to fire a worker to deprive him/her of large commissions, vested pension rights, a year end bonus or other expected financial benefits.
2. It may be illegal for companies to fire workers who return to work after an illness, pregnancy or jury duty.
3. It may be illegal to fire workers who complain about a safety violation or other wrongdoing.
4. It may be illegal to fire a worker in a manner inconsistent with company handbooks, manuals, written contracts and disciplinary rules.
5. It may be illegal to fire a worker who is over 40, belongs to a protected minority, or is a female, primarily because of such personal characteristics.
6. It may be illegal to fire a worker who received a verbal promise of job security or other rights which the company failed to fulfill.
7. It may be illegal to fire a long-term worker when the punishment does not fit the crime and other workers were not similarly treated.
8. It may be illegal if an employer fails to act according to the terms of a written employment contract.
9. Avoid firing workers for “job performance” who have received excellent performance reviews and appraisals and have been given copies of such performance reviews; never inflate performance evaluations for this reason.
10. When possible, try to obtain an employee’s resignation rather than be fired. When workers resign they often waive claims to unemployment and other severance benefits.
11. Confirm all severance arrangements in writing to document the final deal that has been made. Be sure a release is prepared and signed by the terminated worker to protect your company.

© Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

In the United States, employees without a written employment contract generally can be fired for good cause, bad cause, or no cause at all; judicial exceptions to the rule seek to prevent wrongful terminations.

Click here to read the entire “Employment at Will” PDF.

Source: United States Department of Labor, “The employment-at-will doctrine: three major exceptions” http://www.bls.gov/ website. Accessed December 2, 2015. http://www.bls.gov/opub/mlr/2001/01/art1full.pdf

© Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

EPLI covers businesses against claims by workers that their legal rights as employees of the company have been violated.

The number of lawsuits filed by employees against their employers has been rising. While most suits are filed against large corporations, no company is immune to such lawsuits. Recognizing that smaller companies now need this kind of protection, some insurers provide this coverage as an endorsement to their Businessowners Policy (BOP). An endorsement changes the terms and conditions of the policy. Other companies offer EPLI as a stand-alone coverage.

EPLI provides protection against many kinds of employee lawsuits, including claims of:

• 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 cost of EPLI coverage depends on your type of business, the number of employees you have and various risk factors such as whether your company has been sued over employment practices in the past. 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. Policies also typically do not pay for punitive damages or civil or criminal fines. Liabilities covered by other insurance policies such as workers compensation are excluded from EPLI policies.

To prevent employee lawsuits, educate your managers and employees so that you minimize problems in the first place:

• Create effective hiring and screening programs to avoid discrimination in hiring.
• Post corporate policies throughout the workplace and place them in employee handbooks so policies are clear to everyone.
• Show employees what steps to take if they are the object of sexual harassment or discrimination by a supervisor. Make sure supervisors know where the company stands on what behaviors are not permissible.
• Document everything that occurs and the steps your company is taking to prevent and solve employee disputes.

Source: Insurance Information Institute, “What is employment practices liability insurance (EPLI)?” http://www.iii.org website. Accessed December 2, 2015. http://www.iii.org/article/what-employment-practices-liability-insurance-epli

© Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

Dear Valued Customer,

The number of lawsuits filed by employees against their employers has been rising. In this issue of the “————————-” we focus on wrongful termination from the employer’s point of view.

What are the eleven things your company should know to reduce lawsuit exposure? You must do everything possible to avoid work-related lawsuits, but obtaining Employment Practices Liability Insurance (EPLI) to protect your business from workers who believe their legal rights as employees of the company have been violated is a vital backstop. Did you know that employment without a written agreement is terminable by either the employer or employee for any reason whatsoever?

Read this information and much more to see why layoffs have sparked a rise in wrongful termination lawsuits, and, most importantly, how you can add a layer of protection against this happening to you and your company.

We appreciate your continued business and look forward to serving you.

Kind regards,