|
Two years of recession, layoffs, and corporate cost cutting have increased employers' exposure in the area of employment practices liability (EPL). In 2008, the Equal Employment Opportunities Commission (EEOC) reported a 15 percent increase in discrimination claims compared to 2007. And the 2009 numbers are likely to go even higher, according to Elizabeth Grossman, Regional Attorney for the New York District Office of the EEOC, one of the panelists in Marsh's recent New Reality of Risk Webcast, "Hot Topics in Employment Practices Liability."
Grossman said that one trend she has noted involves an increase in the number of companies with potential problems embedded in their corporate policies. "For example, there seem to be significantly more companies that have policy exclusions for those who have arrest and conviction records, as well as credit issues," she said. "And there are a number of troubling policies I'm seeing under the Americans with Disabilities Act. And the final area where I'm really seeing a trend is pregnancy discrimination as well as claims on behalf of those who serve as caregivers."
Adeola Adele, head of Marsh's EPL Practice, said that purchasing employment practices liability insurance (EPLI) coverage is an important step, and that it should be coupled with strong risk mitigation measures. Beyond helping companies avoid costly claims, appropriate and effective risk mitigation can help better position a firm when it comes time to negotiate pricing, terms, and conditions for EPLI coverage, she said.
Paul Siegel, an attorney with Jackson Lewis LLP, noted that laid off workers have filed suit under a variety of federal and state laws, notably the Worker Adjustment Retraining and Notification (WARN) Act. "One of the things that employers need to think about in layoffs is that they require more planning than companies often give them," Siegel said. "You get the feeling that people think more sometimes about catering the luncheon to talk about layoffs than they think about the consequences of layoffs."
Another area that has received increased interest of late is pay equity, said Brian Levin, a principal at Marsh sister company, Mercer. The newly enacted Lilly Ledbetter Fair Pay Act significantly extends the deadline under which employees may file pay equity claims, Levine said. As in other EPL areas, pay equity requires vigilant risk mitigation techniques, he said.
Listen to the Replay of Our Employment Practices Liability Webcast.
If you have questions or comments about the Webcast, please send an e-mail to
.
|
 |
|
|
Listen to the Replay of Our Employment Practices Liability Webcast
View all recent Webcasts
Related Information
Risk Issue: Employment Practices Liability
Marsh's Employment Practices Liability Practice
|
