Employment practices liability

Employment practices liability is an area of United States labor law that deals with wrongful termination, sexual harassment, discrimination, invasion of privacy, false imprisonment, breach of contract, emotional distress, and wage and hour law violations. It may be categorized as a form of professional liability. Employment practices liability insurance (EPL) is sold as a type of management liability insurance,[1] which is related to professional liability insurance.

Most commonly, employment practices liability deals with laws and protections brought under Title VII of the Civil Rights Act of 1964, the ADA (Americans with Disabilities Act) of 1990, the Civil Rights Act of 1991, ADEA (Age Discrimination in Employment Act) of 1967, and Family and Medical Leave Act (FMLA).[2][3] The Equal Employment Opportunity Commission (EEOC) interprets and enforces these laws.

The EEOC recognizes eleven types of employment practices discrimination: age, disability, equal pay/compensation, genetic information, national origin, pregnancy, race/color, religion, retaliation, sex, and sexual harassment.[4]

Analysis of annual claims totals suggests that EPL claims rates correspond to unemployment rates:[5] from 2007 to 2008, total claims in the U.S. jumped 13%[6] as mass layoffs increased by roughly a third.[7] In 2012, charges of retaliation, race, and sex discrimination (including harassment and pregnancy) were the most common types of discrimination that prompted EPL filings.[8]

  1. ^ "Management Liability Insurance | Insurance Glossary Definition | IRMI.com". www.irmi.com. Archived from the original on 2018-11-24. Retrieved 2018-11-24.
  2. ^ "Wage and Hour Division (WHD)". United States Department of Labor. Retrieved 9 December 2014.
  3. ^ http://www.property-casualty.com/Issues/2010/June-1421-2010/Pages/EPL-Insurers-Still-Avoid-WageHour-Coverage-Grants-For-Large-Employers.aspx Archived 2010-06-23 at the Wayback Machine |EPL Insurers Still Avoid Wage-&-Hour Coverage Grants For Large Employers
  4. ^ "Discrimination by Type". U.S. Equal Employment Opportunity Commission. Retrieved 9 December 2014.
  5. ^ "Tough Economy Fuels Rise in Employment Liability". CreditUnionMagazine.com. Retrieved 2013-08-15.
  6. ^ "No Surprises! High Unemployment Makes the Case for EPLI". PropertyCasualty360. Retrieved 2013-08-15.
  7. ^ "Mass layoffs jump by one-third in 2008 – Jan. 28, 2009". CNNMoney.com. Retrieved 2013-08-15.
  8. ^ "EEOC Reports Nearly 100,000 Job Bias Charges in Fiscal Year 2012". U.S. Equal Employment Opportunity Commission. Retrieved 2013-08-15.