Category Archives: Employment Practices Liability

Common Employment Practices Liabilities in the Hiring Process

By Mike Smith | Published September 26, 2017

The hiring process can be wonderful for employers, but while it is exciting to add new talent to the team, the process can be dangerous if you are not careful. Just as applicants are expected to obey certain codes of conduct when applying for jobs, employers need to mind their behavior as well, though it’s not just about etiquette: there are many legal restrictions on the hiring process, and disobeying …

Minimize Workplace Sexual Harassment Claims, Avoid Liability

By Mike Smith | Published May 31, 2017

The issue of sexual harassment has been a topic of discussion most recently in the news in the wake of allegations made against former Fox News host Bill O’Reilly and resulting payment settlements by the network’s parent company, negative comments made by the director at a Bay Area Veteran Affairs clinic in San Francisco when responding to workplace harassment allegations made by his staff, and various legal pundits weighing in …

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The Risk of Employment Practices Violations

By Mike Smith | Published April 11, 2016

The Equal Employment Opportunity Commission (EEOC) receives tens of thousands of claims by employees and former employees each year. In fact, in 2015 there were 89,385 discrimination cases filed with the EEOC. Topping the list were retaliation claims at 39,757, followed by discrimination allegations involving race (31,027), disability (26,968), sex (26,396), age (20,144), national origin (9,438), religion (3,502), color (2,833), the Equal Pay Act (973), and the Genetic Information Non-Discrimination …

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Employment Practices in Tech Industry: The Diversity Issue

By Mike Smith | Published March 14, 2016

Over the last few years there has been heightened scrutiny regarding the makeup of the workforce at technology companies, which is predominantly white, Asian, and male. Diversity in the workforce was underscored in a survey conducted by Fortune last year, which revealed that on average women comprise about one-third of the jobs in the tech industry. That gap expands the higher up you go in an organization, with the best …

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Insuring A Tech Company’s Management Liability Exposures

By Mike Smith | Published February 15, 2016

Information Technology (IT) firms have a number of management liability exposures that, without the proper insurance coverage, can result in serious financial damage. Management liability lawsuits range from workplace-related issues such as discrimination and wrongful termination, to business practices issues such as misappropriation, financial mismanagement and negligence. Lawsuits can be lodged by employees, customers, lenders, vendors and suppliers, competitors and shareholders.

Unfortunately, many smaller tech companies, including start-ups, mistakenly believe …

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Employment Practices: EEOC Takes On Gender Pay Gap with New Proposed Rule

By Mike Smith | Published February 10, 2016

Last month, the Obama Administration called for the Equal Employment Opportunity Commission (EEOC) to begin gathering data from federal contractors and other employers with 100 or more workers on pay based on gender, race and ethnicity. The data will be used to identify employers that may be engaging in pay discrimination so that the EEOC can target its enforcement resources where problems may be likeliest to exist. The plan, which …

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EPLI Issue Highlighted As Former USC Coach Sues for Discrimination, Wrongful Termination

By Mike Smith | Published December 18, 2015

Just recently the University of Southern California (USC) made headline news when it was announced that former head football coach Steve Sarkisian is suing the school for more than $12 million, putting an important employment practices issue front and center. Sarkisian was fired in October for drinking on the job. He claims USC discriminated against him because he has an alcohol problem, which is considered a disability.

Under the American …

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Review Your HR Practices on Employment Background Checks

By Mike Smith | Published October 13, 2015

In the past, we have written about the use of employment background checks and the importance of complying with state and federal laws to avoid finding yourself in violation of employment practices. This issue continues to be an area of concern for companies as exemplified by BMW’s recent consent decree with the Equal Employment Opportunity Commission (EEOC) to pay $1.6 million and offer to hire dozens of people previously rejected …

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EPL: New DOL Interpretations, FSLA and Wage & Hour Claims

By Mike Smith | Published July 29, 2015

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, record-keeping, and youth employment standards affecting employees in the private sector and in federal, state, and local governments. Over the last two years we have seen a rise in wage-and-hour claims brought under the FLSA and state law for overtime compensation and minimum wage violations. In 2014, in fact, some states FLSA cases encompass nearly half of all employment …

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Employment Practices Liability Insurance: Get the Policy You Need

By Mike Smith | Published July 15, 2015

There is a wide range of employment practices-related issues that an employer must address – from policies and procedures that help prevent allegations of discrimination (racial, gender, disability), sexual harassment, retaliation and wrongful termination, among others. But when a claim does arise alleging some type of violation of federal or state employment law, Employment Practices Liability Insurance (EPLI) is designed to respond. In recent years, increasingly more businesses, including small …

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