Employment Practices Liability

Employment Practices Liability

Employment practices liability insurance is a necessity for protecting both a company’s employees and its management staff. Employment practices liability suits can include claims of sexual harassment, racial discrimination, sexual discrimination, breach of employment contracts and even wrongful failure to promote or employ. These types of liability claims and suits are an issue across the United States, even in Denver.

Here are a few real life examples of employment practices liability suits in Colorado and Denver:

Colorado Disability Discrimination

  • A former male employee sued his employer, a packaging company, for disability discrimination alleging that the company refused to allow him to return to work after he was on disability leave recovering from a brain aneurysm. The jury awarded the plaintiff $8M, $7.5M of which was punitive damages.

Colorado Racial Discrimination

  • The U.S. Equal Employment Opportunity Commission (EEOC) settled a race discrimination case brought against a local newspaper for $375K. The suit was brought on behalf of 10 African-American employees who alleged that they were discriminated against in the workplace due to their race.
Employment practices liability Insurance is meant to protect employers and workers in Denver from lawsuits such as the ones above mentioned. Employees can bring these claims against fellow workers, the company itself or the management staff if they feel they have been mistreated. In some cases the employee targets the wrong person, such as the one delivering the message of a layoff, as being the wrong-doer. Either way, many of the cases end up going through the courts, which can be a very public event with the potential to harm a company or person’s reputation.

It is not uncommon for cases like these in Denver to be settled, rather than going through the entire court process. Settlements tend to avoid the drama of an open court and help to preserve the reputations of everyone involved. With employment practice liability lawsuits becoming more common, it is necessary for Denver businesses to protect themselves. This legal brief, is a great statistical reference and guide for employment related lawsuits, as well as preventative measures.

Each year approximately 40,000 employment related lawsuits are launched, highlighting the necessity for comprehensive and essential business insurance policies in Denver. Employment practices liability insurance is just one way you can protect your company from such lawsuits, but there are many other ways as well. Prevention is the key to these situations. Educating your management staff on what constitutes harassment or discrimination is a great first-step. In-house seminars are widely available through a number of professional companies. Sometimes people simply don’t realize that their behavior or actions provide grounds for an employee to take legal action, so begin by educating everyone.

Similarly, your employees need to know their rights as well. Informing your employees of your discrimination or harassment policies is an important part of empowering them and building trust. A Denver liability lawsuit can be avoided if employees are confident that the company will deal with an issue swiftly, and take an employee’s concerns seriously.

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