How to Reduce Your Company’s Employment Practices Liability Risks

Reducing Employmet Practices Liability Risks in Your Company in San Diego, CA

As a business owner, some of the costliest liabilities your company may face are related to contentious employment practices. Discrimination and sexual harassment are just the tip of the iceberg in this regard. Invasion of privacy, hasty terminations, and taking economic advantage of staff are major liabilities that can result in financial ruin. In addition to securing employment practices liability insurance in Vista, there are a few things your company can do to significantly limit these types of liability risks.

Limiting your employment practices liability (EPL) starts with becoming familiar with employment laws. This means reading the codes and statutes printed on all the workplace posters your human resources manager hangs in the employee lunchroom. The most important one is Title VII of the Civil Rights Act, followed by the Equal Pay, Age Discrimination, Americans with Disabilities, and Fair Labor Standards Acts.

EPL risk management starts at the hiring stage. Background investigations are often limited to checking for criminal arrests and convictions while ignoring civil action. A good idea in this regard is to search for the name of the applicant as a plaintiff in the state courts. If you see the job seeker is a serial litigant in labor-related cases, you may wish to proceed with caution.

When it comes to managing unruly employees, the worst you can do is let your emotions guide you. Workplace discipline can help you maintain your company on an even keel, but there must be a gradual process of recorded counseling before reaching a decision to suspend or terminate. Many employers incorrectly assume immediate termination is the answer to all their problems when in reality it could be the beginning of a much larger ordeal.

In the end, EPL risk reduction is a matter better handled by professionals. When in doubt, consult employment law practitioners or your Vista commercial insurance provider.

If you’d like to learn more about reducing the risk of EPL lawsuits, get in touch with Tri-Star Insurance. In addition to business insurance, we also offer affordable health, homeowners, and car insurance Vista residents can rely on. For more information and to receive a free quote, call 760-758-1600 to speak with one of our knowledgeable agents.