Tag: employment practices liability insurance

EEOC Enforcement Activity Increasing, Approaching Pre-Pandemic Levels

By Anita Byer, Setnor Byer Insurance & Risk

The Equal Employment Opportunity Commission’s enforcement capabilities are returning to pre-pandemic levels. Despite COVID-19, the EEOC remains committed to preventing and remedying unlawful employment discrimination and advancing equal opportunities in the workplace. The most recent Agency Financial Report highlights the EEOC’s enforcement accomplishments in 2021 and identifies its strategic enforcement objectives going forward. This crucial information can help employers avoid the EEOC in 2022.

During fiscal year 2021 (October 1st – September 30th), the EEOC handled approximately 383,500 calls and 52,000 emails from the public, which is nearly 40% more than in 2020. The EEOC also:

Secured more than $484 million for victims of discrimination, including:

  • $350.7 million for 11,067 victims of employment discrimination through mediation, conciliation and settlements;
  • $34 million for 1,920 individuals as a direct result of litigation resolutions; and
  • more than $100 million for 2,169 federal employees and applicants.

Filed 116 lawsuits, including:

  • 74 suits on behalf of individuals;
  • 29 non-systemic suits with multiple victims; and
  • 13 systemic suits involving multiple victims or discriminatory policies.

Prioritized its mediation program by conducting:

  • 6,644 successful mediations resulting in $176.6 million in benefits to charging parties; and
  • 639 federal sector mediations resulting in nearly $8.4 million for federal employees and applicants.

The EEOC also resolved 138 lawsuits and achieved favorable results in approximately 96% of all federal district court resolutions. In addition, the EEOC successfully resolved 41.1% of conciliations. A charge with a reasonable cause determination that is resolved by the EEOC through voluntary efforts is considered a successful conciliation.

In 2022, the EEOC will continue its efforts to prevent and remedy employment discrimination by:

  • rebuilding and strengthening its enforcement capacity;
  • addressing systemic discrimination on all bases;
  • advancing racial justice;
  • enforcing pay equity; and
  • addressing the civil rights impact of COVID-19.

Employers can use the EEOC’s Agency Financial Report like a radar detector. It’s much easier to avoid costly violations when you know where the EEOC is directing its attention and how it’s allocating resources. However, given today’s rapidly changing environment, employers also need employment practices liability insurance (EPLI) because it’s impossible to know what tomorrow may bring.

Please contact us to learn more about protecting your business with Employment Practices Liability Insurance.

The Case for Employment Practices Liability Insurance

By Anita Byer, Setnor Byer Insurance & Risk

The case for employment practices liability insurance (EPLI) has never been stronger. Businesses are operating in a rapidly changing environment that keeps producing unprecedented, previously unimaginable challenges. COVID-19, #MeToo, gig workers, remote workers, medical marijuana, CDC guidance, quarantines, vaccines, Zoom meetings—the list goes on. Every business with employees is at risk. Yet, far too many businesses go without EPLI. Sure, they have their reasons, but most of them are actually myths. Let’s look at a few.

None of my employees would ever sue me. Let’s assume this is true (even though it’s not). Equal employment opportunity laws, like Title VII of the Civil Rights Act, protect applicants. They also protect new employees starting day one. How do you know what they will do? It’s also hard to predict what a desperate employee might do, regardless of how long they’ve been employed. Relying on the charity of others is not an effective risk management strategy.

Our organization complies with all employment laws. Virtually all businesses make a good faith effort to comply with applicable employment laws, but this isn’t always enough. Mistakes happen.

We are too small to worry about employee lawsuits.  Every business with employees is at risk, regardless of size. In fact, smaller businesses tend to operate casually and informally, which may increase the likelihood of a claim. And, smaller businesses often lack the resources to have HR professionals or legal counsel on staff to prevent or respond to employment-related claims.

We have an excellent HR department. That’s great! Large businesses have them too, and they get sued all the time. This reason also ignores the fact that HR policies and directives do not always filter down to the entire workforce.

EPLI is too expensive. This can be a legitimate reason, but it’s usually not. Instead of focusing on the policy premium, businesses need to consider the cost of not having EPLI. If you think the premium is expensive, just wait until that first bill from your attorney arrives. Remember, defense lawyers don’t accept contingency fees; they are paid by the hour. It’s also worth noting that EPLI policies are competitively priced, so the premiums are relatively low.

None of these reasons will protect against employment-related claims like an employment practices liability insurance policy. There is a world of difference between dealing with (and paying for) the defense of an employment practices lawsuit and filing a claim under an EPLI policy. One option is not only cheaper, but it provides a peace-of-mind that allows the organization’s focus to remain on the continued successful operation of the business. Needless to say, the alternative is much, much worse.

Please contact us to discuss the true cost and value of employment practices liability insurance.