No matter what type of business you run, you are at risk for an Employment Practices Liability (EPL) lawsuit. Unfortunately, these have become more common in recent years, with allegations of discrimination based on age or gender, wrongful termination, and wage and hours disputes being the top issues. The allegations don’t even have to be true for you to experience a huge financial loss. For this reason, it’s imperative that EPL coverage be part of your Newark Business Insurance package.
In addition to being financially protected, should a lawsuit occur, it’s wise for business owners to know just how to handle an employee lawsuit, so that they can either avoid a suit in the future, or at least not make the current lawsuit worse. So what should you do if you get sued? Here are some suggestions from brighthub.com.
Call an Attorney. If you don’t already have an employment law attorney on hand, contact one as soon as you’ve received service or notice that a lawsuit has been filed.
Don’t Contact Employee. It’s important that you not engage in any contact with the employee, even if you think you can make the situation better. If you unintentionally become angry during a confrontation, that can be held against you in the suit.
Collect Documentation. When an employer receives notice of a lawsuit, they also find out the reason for the suit. Based on what’s contained in the litigation, gather all the documents you think you may need to defend yourself, along with the contact information of witnesses who will support your side.
Call Your Insurance Carrier. Hopefully you will already have EPL coverage. In this case, contact your insurance agent as soon as a lawsuit is presented to you. Your EPL coverage will help you with legal fees, defense costs, and more.
Review Employee Policies. It’s important to look at your employee handbook and see if the lawsuit could have been prevented by having certain verbage or policies in place.
It’s important to remember that any industry, from construction to manufacturing, to transportation, can be sued for almost anything. Be prepared and stay calm if you do ever become involved in an employee lawsuit. Protect your company and yourself by following federal and state guidelines, and by clearly posting employee policies.