{"id":1422,"date":"2012-02-12T13:45:48","date_gmt":"2012-02-12T18:45:48","guid":{"rendered":"http:\/\/www.noyeshallallen.com\/?p=1422"},"modified":"2017-11-09T08:52:01","modified_gmt":"2017-11-09T14:52:01","slug":"when-an-employee-layoff-goes-bad","status":"publish","type":"post","link":"https:\/\/www.noyeshallallen.com\/blog\/when-an-employee-layoff-goes-bad\/","title":{"rendered":"When an Employee Layoff Goes Bad"},"content":{"rendered":"

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Bill runs a caf\u00e9 on the West Side. \u00a0Since a nearby hi-tech facility had a major layoff, lunch business has dropped 25%. In fact, Bill had to let Willie, one of his waiters go last week. Now, Bill’s wife Elaine stands in\u00a0the kitchen with a concerned expression on her face and an official-looking letter in her hand. Willie hired an attorney and filed a lawsuit alleging wrongful termination and discrimination.<\/p>\n

Elaine calls the caf\u00e9’s insurance agent. Good news! Bill & Elaine followed their agent’s recommendation by adding Employment Practices Liability Insurance (EPLI) to their portfolio of coverage last year. When the agent explained that the average cost of defending a groundless<\/strong> lawsuit is $20,000, they knew they couldn’t afford the risk. Their agent explained that the insurance company would respond on their behalf, hire a lawyer if necessary, and pay any damages if they are found liable. Bill and Elaine just avoided a huge expense \u00a0one that could have forced them to close their business.<\/p>\n

Are you smart, like Bill and Elaine? Has your insurance agent recommended EPLI coverage to you? If not, you might consider:<\/p>\n

5 Myths About Employment Practices Lawsuits<\/h3>\n

1. Employee Lawsuits Are Rare<\/strong><\/p>\n

Employment related lawsuits happen more than you think. Six in ten employers in the U.S. have faced an employment-related lawsuit in the past 5 years.<\/p>\n

2. Only Large Employers Get Sued For Employment Practices<\/strong><\/p>\n

Nationwide, more than 40% of employment-related practices claims are brought against employers with fewer than 100 employees.<\/p>\n

3. Employee Lawsuits Don’t Happen in Maine<\/strong><\/p>\n

Think again. The Maine Human Rights Commission or Maine Workers’ Compensation Board handle more than 800 employment-related practices complaints every year.<\/p>\n

4. It’s Covered by Liability or Workers’ Comp Insurance<\/strong><\/p>\n

Unless you have specifically purchased EPLI coverage, the costs of defense or damages are NOT covered by standard Workers Comp, General Liability or Professional Liability insurance policies.<\/p>\n

5. EPLI Insurance is Expensive<\/strong><\/p>\n

Depending upon the type of business you operate, Maine Employment-Related Practices Insurance costs as little as $30 per employee per year – or $0.58 per weekly payroll period.<\/p>\n

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What does EPLI Cover?<\/h3>\n