employment practices liability insurance

How to Avoid Making Mistakes That Can Lead to Claims of Improper Employment Practices

Employees placed by staffing agencies to perform work for businesses can remain the responsibility of the staffing agencies even though they may be supervised and monitored by another business. In addition to being held liable for employees’ actions, the staffing agency can also be held responsible for improper employment practices committed by the businesses. Although employment practices liability insurance can cover legal fees and settlements resulting from claims of improper employment practices, applying these tips can help firms avoid actions that could lead to allegations and lawsuits.

Ensure that any screening tools used in the application process can be consistently administered and that they can comply with guidelines set by the US Equal Employment Opportunity Commission (EEOC).

Educate staff on how they can avoid discriminatory practices when referring, hiring and terminating employees.

Refuse requests from business clients that may be illegal or in violation of EEOC standards.

Conduct self-assessments of business practices to identify and correct situations where staffing agency employees may be guiding potential employees into specific jobs based on their race, ethnicity, disability, gender, age or religion.

Applying these tips may not eliminate all allegations of improper employment practices, but it can significantly reduce the severity and number of occurrences. A good employment practices liability policy can protect your staffing agency from financial liability if an allegation is made or a lawsuit is filed.