Dive Brief:
- Employers often have a false sense of security regarding employment-related legal issues, according to Smart Business Network. But that's a serious mistake in judgment, claims Chris Zito, president of Zito Insurance Agency, in Ohio. In many cases, terminating an employee can result in litigation if employers don't protect themselves ahead of time.
- Zito told SBN that EPL claims have increased dramatically over the past decade, with claims coming from past, current or even prospective employees.
- Employers, especially smaller ones, need protection against legal defense costs, which can be reason alone to purchase coverage EPL coverage as liability for damages.
Dive Insight:
Apart from EPL insurance coverage, Zito recommends some basic precautions, including proper, clear communication and employee training regarding the terms and conditions of their employment, and adequate documentation of employee files regarding disciplinary hearings or actions (including performance evaluations).
He adds that employers must review all employment-related policies and documents, such as employment applications and employee handbooks, to assure the language adheres to the current employment laws in the state where business is conducted.
