|
| Risk Management: Employment Practices and Liability |
|
|
EMPLOYMENT PRACTICES LIABILITY (EPL)
The 90's have seen a dramatic increase in the number of administrative charges and litigation in the area of employment practices. At first, the cases were limited to wrongful termination, sexual harassment and discrimination suits. Recently, cases involving wrongful demotion, failure to hire, and retaliation appear to be on the rise. There is no reason to expect a downward trend as we begin the twenty-first century.
Nationally, the average wrongful termination jury award based on age discrimination is $749,842; $378,135 for disability discrimination. Depending on the complexity of the litigation, legal defense costs can range from $200,000 to $1,000,000 per case. However, the monetary loss does not end here. Factor in the costs related to the unproductive use of manager's time and training a replacement employee and it is easy to see that the overall costs associated with wrongful termination claims can be staggering.
At NYMIR, EPL is a leading cause of loss. Cases alleging wrongful termination based on age and disability discrimination, sexual harassment and retaliation (often involving 'whistle blowers') are the most common types of EPL claims submitted to the Reciprocal's claim department for handling.
Discrimination occurs when an employee is treated unfairly and/or less favorably than similarly situated employees because of race, sex (including sexual harassment), age, national origin, disability and/or other factors. The difference in treatment can be either blatant, such as direct verbal assaults, jokes, slurs and innuendoes, or subtle, such as job assignments, training, benefits, and promotions. Today, it seems that employment discrimination is more of the subtle rather than blatant form.
There are various federal and state laws that collectively protect employee from discrimination. For example, the Civil Rights Act of 1964, Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA). These federal laws can be read at the Equal Employment Opportunity Commission (EEOC) website:
www.eeoc.gov/policy/laws.html . The New York State Human Rights Law, which also provides protection for employees, can be read at: www.nysdhr.com/hrlaw.html. These laws may also protect employees against retaliation for complaining about discrimination.
Generally, employees can sue their employers for back and front pay, compensatory damages, punitive damages and in some cases, attorney's fees and cost.
|
