Employment Related Practices Insurance

In case, you have been putting off talking to your Independent Insurance Agent about that Employment related practices insurance or Union liability insurance he/she has been recommending consider the following:

1. 1991 “Tailhook” convention —— $ 8 million to settle allegations of physical and verbal sexual abuse

2. State Farm —— $157 million to 800 staff employees to settle allegations of failure to pronlote and denial of opportunity

3. IDS Financial Services -- $ 35 million to 32 former employees to settle age discrimination allegations

4. Shoney’s -- $134 million out-of-court settlement arising from race discrimination allegations



Employment Related claims

1. Three of five businesses will be sued this year by an employee or a former
employee over an employment practice

41.5% of all claims-- employers of’ 15 to 100
23.9% of all claims -— employers of 500 or more
18.0% of’ all claims -- employers of’ 101 to 499
16.6% of all claims-- employers of less than 15

2. Employment practices suits account for 20% of all Federal Court filings

3. 56% of all employment practice filings going to trial result in a verdict for the plaintiff employee

4. The average jury award is S250.000, with 15% exceeding $1 million

5. 33% of wrongful termination verdicts have punitive damages equal to or exceeding compensatory damage.

Here are just a few sources of Liability for Employment Related Practices



• Civi1 Rights Act of 1964

• Civil Rights Act of 1991
• Americans With Disabilities Act (ADA)
• Age Discrimination in Employment Act of 1967 (ADEA)

• Worker Adjustment and Retraining Act (WARN)
• Employee Polygraph Protection Act of 1988
• Equal Pay Act
• Older Worker Benefit Protection Act

• National Labor Relations Act

• Uniform Services Employment and Reemployment Rights Act of 1994
• Family and Medical Leave Act (FM LA)
• Fair Labor Standards Act (FLSA)
• Immigration Reform and Control Act

• Occupational Safety and Health Act (OSHA)
• Civil Rights Act of 1866
• Attorneys Fees Award Act of 1976

• Pregnancy Discrimination Act of’ 1978

• State parallel laws
• Local parallel laws

Next time take a few minutes to discuss this with your Independent Insurance Agent.