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