Thanks to TriNet for quoting me in their 9/29/16 blog article “EPLI: These 4 Letters Could Save Your Business.” Also, thanks to Kjerstin Johnson for quoting me in her article for The FruitGuys Cast Your Ballot—For Civility, about politics in the workplace. Both Articles are below.
EPLI: These 4 Letters Could Save Your Business
If an employee cries foul, employment practices liability insurance (EPLI) can be a company’s best friend. This unsettling situation, which immediately draws a company into a potentially nightmarish legal, HR and financial maze, is one that few business leaders foresee. “I’ve heard people say, ‘We’ve never been sued before; why do I need to buy insurance for that? We’re like a family around here,’” says Gordon Coyle, CEO of The Coyle Group, an insurance and risk management firm in New City, New York.
However, employment-related claims are more common than most people realize. The Equal Employment Opportunity Commission (EEOC), which investigates allegations of discrimination and harassment by employers (and which is the primary means employees have for seeking redress for such claims), received almost 90,000 complaints in fiscal year 2015 alone.
The results can be devastating for a business and no industry is immune from such charges. For example, one manufacturing plant faced a federal lawsuit brought by a group of female employees who alleged that management allowed the existence of a hostile work environment, reports attorney Michael Gottlieb, founder of Momentum Law Group in Gaithersburg, Maryland. Each employee was eventually awarded a significant sum in damages for emotional distress.
Stories like these are leading more companies to consider EPLI coverage. EPLI offers protection from employment-related claims filed by current, prospective and former employees that are not covered by general liability insurance and other types of policies.
Broadly speaking, EPLI functions as a sort of life raft for businesses that face allegations of wrongful acts, including harassment, wrongful termination, failure to hire, failure to promote and discrimination. Whether the employer settles, wins or loses the case, EPLI typically covers the legal defense fees and settlement costs or damages (up to a policy’s coverage limit).
Risks v. costs
Since businesses of all sizes are potentially vulnerable to employment-related claims, all can benefit from EPLI, experts say.
“Whether you have five or 50 or 500 employees, there are significant risks around employment,” says Coyle. “Employment wrongful acts happen every day and they become very costly.”
While the “vast majority” of employment-related claims settle, Gottlieb says, “It’s not uncommon for the settlement and defense costs to be in the hundreds of thousands of dollars.”
As a general rule, EPLI can either be purchased as a stand-alone policy or in a package with other policies. The cost depends on such factors as the number of employees in a business, how many past claims it has had and the type of industry it is in. Such policies typically include a deductible, which can be as low as $1,000 or in excess of $100,000, Coyle says.
Be sure to read a policy carefully before purchasing it to check for any exclusions or limitations, advises Charles Krugel, a Chicago–based labor and employment law attorney.
For example, wage and hour claims, such as allegations that an employee was not paid overtime, are not covered by all EPLI policies.
“If you don’t purchase the insurance, you’re betting that you either won’t get hit with a claim, or if you do get hit with a claim, you’ll be able to afford it,” says Krugel. “I’ve handled a number of claims where there hasn’t been EPLI and it’s just a financial drain on the business.”
It is so much better to be in the situation of the manufacturing company that was sued for a hostile work environment. The company had an EPLI policy that covered its legal fees as well as the damages awarded.
This communication is for informational purposes only; it is not legal, tax or accounting advice; and is not an offer to sell, buy or procure insurance.
Cast Your Ballot—For Civility
The 2016 presidential election season is the most divisive in recent memory. Every day there seems to be a new controversy or a new reason to dislike a candidate, prompting emotional reactions that swing between bleak resignation and a fiery desire for change. And that’s just how the news makes us feel. At home, even seemingly casual comments can polarize friends and family members and leave us all feeling raw and partisan.
This is true at work as well. “Office politics” takes on a whole new meaning when you’re talking about the election. With a 24-hour news cycle and emotions running high, it can be hard to keep conversation away from the topic. And now, as the election enters its final stretch, is the perfect time to consider how best to handle political conversations at the office. Here are five tips to help you navigate election talk at the office:
1. Know Your Boundaries
Some of us avoid election talk simply to keep the peace. But did you know that some workplaces actually regulate speech?
Depending on your office and what state you’re located in, your right to free speech in the workplace is either allowed or regulated. If you have a government job, chances are the laws are pretty generous regarding what can and can’t be said in the workplace. However, private employers can make different rules regarding what is and is not appropriate for workplace chatter.
Your first step should be to check your employee handbook for any mention of protected speech, according to Sevilla P. Rhoads, a labor and employment lawyer in Seattle. After that, visit the website of your local government (both city and state) to learn about what kind of speech is protected in your workplace. The National Labor Relations Board is another great resource for understanding freedom of speech rights.
Be aware that, thanks to technology, what counts as “speech” has expanded beyond the spoken word. The watercooler now exists online, so be aware that emails, or even social media posts, sent on company time or from a company computer could fall under restricted speech guidelines. Unfortunately, there are no hard-and-fast rules around this—Rhoads says these issues are still being debated in the courts—so it’s best to be prudent.
2. Focus On Your Work
Discussing politics at work isn’t bad—in fact, such discussions are part of the fabric of our country—but when it starts to interfere with work, a line is crossed. “[At work,] your focus should be on making money,” says Charles Krugel, a lawyer and HR specialist in Chicago. “Any conversation that gets too heavy and intrudes on that is really detrimental for business.”
Getting back to work can be a convenient excuse to exit a charged conversation, change the subject, or set an example for colleagues who would rather trade barbs about politicians than complete the task at hand. Who knows? If you refocus your efforts on work every time a political discussion breaks out, your productivity could hit an all-time high this fall.
3. Keep It Light
Having a sense of humor is a tried-and-true method of defusing a situation, says Krugel. “If I’m walking by a couple people in the workplace talking about Clinton or Trump, I might say to them, ‘Hey, don’t turn this place into Jerry Springer,’” he says, referring to the talk show famous for its onstage brawls. Being funny can lighten the mood, maintain neutrality in a highly charged conversation, and send a message in a more good-natured manner than an emotional, knee-jerk reaction. The deflection provided by humor gives you the opportunity to change the subject.
4. Talk to HR
If you do find yourself in an uncomfortable situation or amid bad feelings, go see your HR rep. “When it comes to workplace disputes, the best thing to do is deal with them upfront and quickly,” says labor lawyer Rhoads. “They escalate when people avoid them, start talking about each other behind each other’s backs, and [don’t go] directly to somebody who’s informed about how to work with conflicts.”
Rhoads emphasizes that HR employees are trained in exactly this kind of conflict resolution and would be happy to help. “They love helping people feel comfortable in the workplace and usually much prefer it to drafting a policy.” If your workplace lacks a robust HR department, go to a trusted manager.
5. Be Decent
Conversations around this particular election may seem especially stress inducing, but both Rhoads and Krugel emphasize that they should be no different than any other discussion at work.
Interested in more WorkLife articles? Check them out!
No matter what’s happening on the news, at work you should always respect other people’s views, notice when other people are uncomfortable, and take care to communicate responsibly. Simply approach discussing the election with the same decency and sensitivity you do any other issue in the office. “[The election] is like any other topic—it’s really a matter of respect,” says Rhoads. “You don’t need to know any of the laws or any of the rules if you conduct yourself in a respectable, professional manner.”
Kjerstin Johnson is a writer and editor who lives in Portland, Oregon.
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