HSB: Workplace Training and Policies Key to Avoiding Employment Claims

National Small Business Week, which runs May 1-6, highlights the importance of small employers to the nation’s economy and community life — and the challenges that small business owners face.

A big concern of small business owners in today’s changing workplace is the number of employment-related discrimination claims and lawsuits that employees file against their employers.

Many of these complaints involve charges of retaliation, with employees claiming they were punished for alleging discrimination or for participating in a discrimination proceeding against their employer.

In its latest report for 2015, the U.S. Equal Employment Opportunity Commission (EEOC) said it received 39,757 retaliation claims and recovered $178.3 million in monetary benefits from employers. Many smaller businesses paid penalties and settlements.

Hartford Steam Boiler’s insurance data shows employment claim settlements range between $27,000 and $54,000. The amount paid for a legal defense averages $10,000, a significant amount for a small business owner who typically takes home approximately $60,000 in annual salary.

It’s important for small business owners to take steps to help prevent an employment claim:

• Train managers and employees to understand and follow employment laws;
• Follow changes and updates in laws and employment regulations;
• Cover the business with employment practices liability insurance.

Source: HSB