An employee took an early retirement (at age 49) after she lost her opportunity to secure a post-consolidation managerial position. Subsequently, she filed a lawsuit, arguing that her employer was guilty of both age and sex discrimination. The manager’s job she failed to acquire went to a younger male employee.

Different rulings arose from hearings at both a trial and an appellate-level court. Click below to read whether the final court decision aligned with the unfair discrimination allegations.

Whether it occurs on a factory floor or within a carpeted office, work decisions often involve actions such as discipline, demotions or terminations that result in litigation. The contentious area between employers and their workers frequently involves disparate points of view. Employers believe their actions are valid. Employees suffering from adverse decisions believe they were not justified.

Lawsuits have a higher likelihood of being filed because the stakes are often quite high. Decisions usually involve the loss of revenue from a denied raise, promotion or termination. Naturally, the latter means the loss of all employment income.

Click here for a brief description of elements found in a basic employment related practices liability (EPL) policy. It is from the Commercial Specialty Liability Section of PF&M found in Advantage Plus.

As just mentioned, employment disputes can be highly contentious, mostly because they are grounded more in opinion than facts. Instead of determining whether any eligible physical loss or injury has occurred (such as car collisions, home damage, etc.), workplace arguments revolve around what motivated a particular action. That means interpreting actions. Interpretations are, well, opinions. Opinions are highly subjective.

We mentioned specialty coverage is available to address an operation’s liability that may arise from actions taken against their employees. However, even with such coverage, employers need to be vigilant that their actions can be supported by evidence and documentation in order to minimize expensive disputes.

Click here for an article discussing some aspects of EPL exposures. It is from Emarketing for Agents found in Advantage Plus.

You may be familiar with the adage, “Hindsight is 20/20 (perfect). Of course, clarity can be greatest when enough time passes to observe original thoughts, developments and their consequences. Sadly, the opportunity for clarity is often squandered by a simple mistake, the failure to take a backward look. That is captured by another equally important saying – “Those who fail to learn from history are doomed to repeat it.”

Insurance is a service sector that experiences more success by paying attention to the past. The risks we faced in the past largely continue into the present and the future. Current products are the result of ongoing adjustments. Existing products have many differences compared to their predecessors. Without change, the policies offered in the insurance market could easily become ineffective or obsolete.

With regard to the EPL liability environment, employment-related exposures, it’s dynamic and greater understanding may be gained by past insights.

Click here for an excerpt from an article that discusses a number of key issues that affect the workplace. It is from the November 2002 issue of Rough Notes Magazine, found in Advantage Plus.