Employment Practices Liability Insurance

> Lawsuits

Today's employees are becoming more diverse, autonomous and highly mobile. One result of this trend is a surge in employment related claims. Typically, an employee alleges that the employer committed a wrongful act, which violated the employee's rights to equal opportunity in the workplace. Employment related suits usually involve one or more of the following"

• Discrimination - unfair treatment of a person, relative to others, so as to deprive that person of equal employment opportunities on the basis of race, color, sex, religion, national origin or disability. The laws apply to all aspects of the employment process, from recruitment and selection, to promotion and termination.
• Sexual Harassment - unwanted sexual advance, requests for sexual favors, and other verbal or physical conduct of a sexual nature where the employee's compliance with or refusal of the request must effect his or her job performance, or create a hostile work environment.
• Wrongful Termination - termination of employment in an illegal manner. Most state laws allow an employer to terminate an employee “at-will”, that is, without notice. There are exceptions, however. Depending on the jurisdiction, the discharge may be considered wrongful if the employee can prove:
  • Breach of contract, either expressed or implied.
  • Violation of public policy.
  • Breach of an implied covenant of good faith and fair dealing.
• Workplace Torts - workplace torts consist of various offenses which do not fit the other three categories. A tort is a violation of a person's civil rights under common law. Workplace torts include negligent hiring and failure to promote.