Employment Law And Business


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Employers with less than 500 Employees face a high risk of facing litigation but less than 50% carry the necessary coverage to protect them.

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Employment Law And Business

  1. 1. The Impact of Employment Charges & Lawsuits on Business<br />Webinar Series<br />
  2. 2. Employment charge & lawsuit frequency <br />Business impact <br />Protection & prevention best practices<br />BPS services <br />Topics<br />
  3. 3. Between 1980 and 2000, the number of U.S. employment-related laws and regulations grew by about 60%, from 38 to 60. There have been 17 in 2009 alone.<br />Laws & regulations<br />
  4. 4. Wrongful termination - discharge of an employee for invalid reasons <br />Discrimination - denial of equal treatment of employees for prejudicial reasons <br />Sexual harassment - subjecting employees to unwelcome advances, lewd behavior, offensive remarks; or the failure to stop such behavior <br />Employment Charge types<br />
  5. 5. How many wrongful termination lawsuits?<br />No one knows because state and federal courts don’t compile statistics on the specific types of cases filed (such as wrongful termination or discrimination) <br />- Public Law Research Institute, University of California <br />Frequency<br />
  6. 6. In 2002, the EEOC received 85,000 charges for discrimination and sexual harassment (approximately 2.0 charges annually per 1,000 employees) <br />Doesn’t include charges filed at the state level<br />How many discrimination and sexual harassment lawsuits?<br />
  7. 7. The most common targets for federaldiscrimination claims? <br />Private employers with between 15 and 100 employees (41.5%)<br />Private companies with between 100 and 500 employees (18%) <br />Private companies with an excess of 500 employees (23.9%)<br />- EPLI: Understanding the exposure and preventing claims, 2001 (www.lawthatworks.coms Employment Practice<br />Liability: Average Jury Award- Jury Verdict Research, 2004<br />Targets<br />
  8. 8. Discrimination Liability: Average Jury Award- Jury Verdict Research, 2004<br />
  9. 9. Discrimination Liability: Type of Case- Jury Verdict Research, 2004<br />
  10. 10. Will an allegation or actual case of wrongful termination, discrimination or sexual harassment cause serious financial harm to their firm?<br />32% of private companies said it would<br />55% of these said it would probably cost more than $100,000 to settle such a case, and 19% indicated it could cost at least $500,000 <br />- Pittsburgh Business Journal, January 21, 2005 <br />Business impact<br />
  11. 11. 60% of privately held companies don't carry Employment Practices Liability Insurance (EPLI)<br />Among large firms (those with more than $100 million in annual revenue), 45% carry no EPLI protection<br />Among small firms (those with less than $10 million in annual revenue), 75% carry no EPLI, making those that can least afford an EPL suit especially vulnerable <br />- Pittsburgh Business Journal, January 21, 2005 <br />Business impact<br />
  12. 12. Written policies barring unfair treatment<br />Consistent application of policies <br />Promptly address all employee complaints <br />All layoffs and disciplinary actions fully documented<br />Develop and implement anti-harassment and anti-discrimination policies<br />Protection & Prevention Best Practices<br />
  13. 13. Train supervisors and employees <br />Conduct periodic audits of employment-related policies and procedures <br />Implement procedures for employees to report incidents without retaliation <br />Exhibit a balance of employees by race and gender at all company levels<br />Develop and implement an employee handbook <br />Protection & Prevention Best Practices<br />
  14. 14. 25 years, the number of U.S. employment-related laws and regulations has grown by about 60%<br />The average employment practices liability award is approximately $250,000<br />The most common target for federal discrimination claims are small employers - those least likely to be using professional HR practices<br />75% of small employers don’t carry EPLI coverage<br />BPS offers workforce alignment and business protection services that help businesses lower their employment practices liability exposure <br />Summary<br />