Insureon Blog

Signs that an Employee Is Going to Sue You

16. June 2014 08:38

Businessman pointing finger at businesswoman

All week we’ve been discussing workplace harassment and discrimination. You’ve read about employment practices issues related to everything from hiring to firing. But just how likely is it that your business could be sued – especially when you’re taking the steps to maintain a safe, tolerant work environment?

According to the Equal Employment Opportunity Commission’s Enforcement & Litigation Statistics, 93,727 employment practices charges were filed in fiscal year 2013 alone. That figure is a somber reminder that employers are sued even when they are trying their best to follow the law.

Fortunately, there are ways to resolve employment issues before they turn into full-fledged lawsuits. But first, you need to be able to recognize the warning signs of impending legal trouble.

You Might Be Served with an Employment Practices Lawsuit If…

Founded workplace harassment and discrimination lawsuits rarely crop up out of the blue. There is usually a fair bit of warning because it takes time for employees to build their cases. After all, the burden of proof is on the employee, and it can be difficult to prove a workplace discrimination or harassment case.

That sounds bleak – but there is good news. Employers usually have ample opportunity to identify and resolve the issue before it becomes a lawsuit. Here are the top three signs your business may be in for an employment practices lawsuit:

But what happens when you take all the steps to resolve an issue and the lawsuit happens anyway? Hopefully your business carries Employment Practices Liability Insurance (EPLI). EPLI is special coverage you can add to your Errors & Omissions Insurance policy. It protects you from the high cost of employment lawsuits by helping you pay for expenses such as attorney’s fees, judgments, and settlements.

To learn more about this insurance policy, read “What Is Employment Practices Liability Insurance (EPLI)?

This post is part of an ongoing series on Employment Practices Liability Insurance, the high cost of employment discrimination lawsuits, and EEOC laws. Stay tuned for more on what can go wrong when hiring (and firing) employees.

know your business risks


EPLI | Errors & Omissions | Errors and Omissions Insurance | Professional Liability Insurance | Risk Management | Small Business | Small Business Risk Management | Tips for All Small Businesses

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