This article is part of a series sponsored by IAT Insurance Group.
The pandemic’s workplace has brought significant changes to the employment responsibility situation. Disability discrimination and retaliation claims have become some of the most complex and frequent issues, often due to evolving workplace dynamics, increased regulatory expectations and procedural errors.
In fact, the Equal Employment Opportunity Commission (EEOC) received more than 81,000 new allegations of discrimination last year, up 10.3% from the previous year, which accounted for $665 million in monetary relief. Sexism and sexual harassment claims have been declining since reaching their peak a few years ago, but they continue to pose risks, especially when employees return to face-to-face work environments.
Disability claims require employers to browse within the broad legal definition of “disability” and adhere to the complex accommodation process. Questions like “What constitutes reasonable accommodation”? or “How long should an extended leave position be maintained?” If not completely resolved, it can make it easy for employers to take responsibility. Even a step missing (such as failure to record restrictions or communicate updates) can quickly escalate into expensive legal disputes.
Revenge claims are often accompanied by allegations of discrimination and harassment, complicating the landscape. Timing actions (such as changing job responsibilities) terminate work after raising workplace concerns, even based on legitimate performance issues, can lead to retaliation. These claims are particularly challenging to resolve issues early in litigation and can greatly increase financial exposure.
Businesses that meet these challenges must balance operational needs with legal compliance. Positive strategies, including clear documentation, effective training programs, and tailored EPLI coverage, are essential to reduce risk and foster a compliant workplace culture.
Strategies for actively managing employment risks
Managing employment responsibility risks requires a proactive strategic approach. By focusing on strengthening internal processes, investing in employee education and leveraging the protections provided by EPLI, businesses can reduce their impact on expensive claims while fostering a culture of compliance.
- Establish a document foundation
A thorough document is the cornerstone of defending employment claims. Disputes often benefit employees without detailed records of performance issues, accommodation requests and decision-making processes. For example, in states with stricter leave and accommodation laws (such as California), insufficient documentation can lead to scrutiny of plaintiffs’ attorneys and disruption of defense efforts.
Employers should implement standardized practices to consistently and safely record all employee interactions. Proper documentation not only prevents potential claims but also supports informed decision-making, ensuring that organizations should fully address potential legal challenges when they arise.
- Train Prevention
Knowledge gaps between employees and managers often lead to expensive mistakes. Training programs involve disability accommodation, workplace harassment, and salary and hourly compliance, allowing employees to effectively deal with complex workplace issues at all levels.
For example, training has holiday laws and proactive communications can prevent accommodation requests from escalating into controversy. By regularly educating employees, businesses develop a culture of awareness and accountability while reducing the likelihood of claims. A well-trained workforce builds resilience and compliance, ensuring better outcomes for the organization.
- EPLI and panel companies
When managing employment claims, it is crucial to choose the right legal counsel. Law firms with expertise in employment practice liability and insurance defense can greatly improve results by aligning with the company’s resolution strategies. Experienced group lawyers understand the nuances of employment laws, the risks associated with charging regulations, and the importance of early resolutions to avoid prolonged litigation and excessive costs.
Employers should work closely with their insurance providers to identify group lawyers who commit to effective, cost-effective claims solutions. This strategic choice can simplify the defense process and provide businesses with greater opportunities for favorable outcomes.
- Full protection with EPLI
EPLI provides a safety net for businesses facing financial and reputational risks to workplace claims. Strong policies cover the defense costs, settlements and damages associated with allegations such as discrimination, retaliation, wrongful firing and harassment.
In addition, EPLI can pay for auxiliary expenses, such as investigation costs, providing businesses with the resources they need to effectively manage claims. For companies that operate in high-risk industries or regions, tailored policies provide essential protection for unpredictable challenges. Companies that prioritize and utilize their EPLI coverage ensure that they are prepared for unforeseen responsibilities.
Responsible for employment risks
Claims related to employment, especially those involving disability and retaliation, are increasingly costly and complex for businesses in various industries. However, with an active risk management strategy, comprehensive coverage of insurance and ongoing employee training, employers can reduce exposure and promote a compliant workplace environment.
To dig deeper into these challenges and strategies, listen to IAT’s What is brewing Plot about management responsibility insights.
By Angela Roberts
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Responsibility
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