Top Liability Concerns for Employers

Source:  One Beacon Professional Liability Insurance

As the economy continues to struggle, the number of work place lawsuits continue to rise.  Laurie Sablak, Assistant Vice President, Management Liability for OBPI, takes a look at the top Ten Concerns facing employers during 2011-2012.

Please note these are general guidelines. 

Number One:  Retaliation
Reason:  Cause of action with the greatest increase in frequency in recent years (EEOC Statistics).  Difficulty in defending.

Number Two:  Age Discrimination
Reason:  Tough Economy; Baby boomers looking to keep working amid corporate downsizing efforts.  Highest median aware for claims brought in a state court.  (Jury Verdict Research Data)

Number Three:  Disability Discrimination and FMLA Issues
Reason:  Recent amendments to the ADA increase the number of people defined as individuals with a disability.  Under the FMLA, military leave provisions and hte change to the medical certification process are poorly understood issues among many employers.

Number Four:  Race Discrimination
Reason:  Most frequently alleged type of discrimination (Per EEOC Statistics).  Workforce is increasingly racially diverse due to population trends.

Number Five:  Wage and Hour Discrimination
Reason:  Misclassification (exempt/ non-exempt, independent contractor/ employee), overtime, tips, and rest and meal periods have been the subject of investigations by the US Department of Labor.  Over 200 new DOL investigators were hired in 2010;  more to follow. 

Number Six:  Social Media
Reason:  Little regulation exists in this area.  Failure of many employers to have social media policies or preparation for events/ issues related to social media, increased torts exposure (defamation, invasion of privacy)

Number Seven:  Harassment
Reasons:  33 percent increase in EEOC harassment charges from 2006 to 2008.

Number Eight:  Gender and Sexual Orientation
Reasons:  Lilly Ledbetter Act regarding back wage claims for gender disparity in pay.  Difference in sexual orientation protections under various state laws.

Number Nine:  Class Action

Reasons:  Large employer exposure with high damage potential.

Number Ten:  Different working relationships (Contingent workers, Telecommuters, Offshore Outsourcing)

Reasons:  Increases claim potential in other areas referenced above (such as wage/hour and discrimination).  Clash of culture, where workers have diverse backgrounds.  Which HR policies apply when workers are not necessarily "employees"?

More information on Employer EEOC issues can be found at www.eeoc.gov.