Employment Law: How Hiring Practices Affect Risks

Employment Law: How Hiring Practices Affect Risks

Employment law has been a hot topic issue in recent years; especially with the increased scrutiny from the EEOC due to high-profile employment practices liability cases. Employment liability cases don’t just affect companies with well-established employees. Often, new hires can bring employment law risks your clients may not have even thought of. So how exactly do hiring practices affect risks?

First of all, illegal discrimination is one of the most common causes for a complaint from a new hire. This may have been an unintentional occurrence on the company’s part, but the key is for your client to be aware of and comply with all anti-discrimination measure that exists federally. This means that employers may not make a hiring decision that is even perceived to have been made on the basis of race, gender, pregnancy, national origin, religion, disability, or age. Another common issue employers run into with new staff is the violation of applicants’ privacy rights. Employers may not inquire if the applicant is married, how many children they have, what race they are, etc.

Discrimination and privacy violations are not the only legal considerations your clients must make when hiring new staff; they should ensure that they avoid making promises they can’t keep (such as pay or benefits information that is not guaranteed), follow all legal rules for hiring immigrants, and follow all legal rules for hiring young workers.

At PL Risk Advisors, we understand the unique risks your clients face in terms of Employment Practices Liability. We offer clients in all classes of business a competitive EPLI product designed to cover legal fees, settlements and damage awards that result from EPLI claims. Please contact us today at (855) 403-5982 for more information.