Common Employment Practices Liability Claims
What Types of Employment Practices Claims Can a Business Face?
Claims can arise at many stages of the employment relationship, from the initial hiring process through everyday supervision and eventual separation from the company.
Wrongful Termination
A former employee may allege that they were terminated for an unlawful or improper reason, or that the employer failed to follow employment policies or procedures.
Harassment
Allegations may involve sexual harassment, hostile work environment, inappropriate conduct, repeated comments, unwanted behavior, or other workplace interactions.
Discrimination
An employee or applicant may allege that hiring, scheduling, pay, promotion, discipline, termination, or another employment decision was discriminatory.
Employment Claims Can Begin With a Routine Management Decision
Hiring, scheduling, performance reviews, discipline, promotions, workplace complaints, and terminations are normal parts of managing employees. Problems can arise when an employee believes one of those decisions was handled unfairly or unlawfully.
Retaliation
An employee may allege that they were disciplined, demoted, terminated, or treated differently after reporting a concern, making a complaint, or participating in a workplace investigation.
Failure to Hire
Applicants may allege that a hiring decision was based on an improper factor or that the recruitment and interview process was discriminatory.
Promotion & Advancement
Employees may dispute decisions involving promotions, job assignments, opportunities, evaluations, raises, or other employment advancement.
Workplace Discipline
Written warnings, suspensions, schedule changes, demotions, performance plans, and other disciplinary actions may become part of an employment claim.
What Can Help a Business Prepare for Employment Claims?
EPLI works best as part of a broader employment-risk strategy that includes clear policies, consistent documentation, supervisor training, and timely reporting of potential claims.
Employee Handbook
Written workplace policies can help explain expectations involving conduct, harassment, discrimination, attendance, discipline, complaints, and other employment practices.
Documentation
Keep appropriate records involving performance reviews, disciplinary actions, complaints, investigations, attendance, promotions, and termination decisions.
Supervisor Training
Managers and supervisors should understand company policies and know how to respond when an employee raises a workplace concern.
Prompt Claim Reporting
EPLI is commonly written on a claims-made basis, so complaints, demand letters, administrative charges, and other potential claims should be reported according to the policy requirements.