Q: I’m new to the position of Business Manager, and very new to education. I’ve been doing a good amount of reading to prepare for my role, but some of it escapes me. Can you tell me what an “Employment Practices” claim is in terms of education?
A: An Employment Practices claim (EPL claim) is almost always based on a claim of discrimination. It deals most commonly with laws and protections brought under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Civil Rights Act, the Age Discrimination in Employment Act, and the Family Medical Leave Act.
Such claims may include:
- Wrongful termination
- Wrongful (failure to) hire
- Sexual harassment
- Discrimination
- Breach of contract
- Failure to promote
- Pay inequity
- Failure to supervise
- Emotional distress
EPL claims can be costly. In 2010, the U.S. Equal Employment Opportunity Commission (EEOC) saw a record 99,922 discrimination claims filed—the highest number of cases brought to the agency in its 45-year history. (Before claims go to the court, the case must be seen by the EEOC.) According to the EEOC, the average total for a discrimination case regardless, of the final verdict, can exceed $235,000.
EPL insurance is a policy your school should have to protect it and your Board of Trustees. Having an insurance claim won’t protect you from being sued, but it can soften some of the legal ramifications and costs of the suit. More than half of the claims brought before the EEOC are filed against small organizations. Yet, less than 2% of businesses with fewer than 50 employees carry EPL insurance!
Of course, best practices are the best way to protect your school from discrimination suits. Please note that laws differ from state to state. Since you’re new to your school, it’s a good idea to read up on your state’s laws and introduce yourself to your school’s lawyer. Legal counsel can give you a more in-depth idea of what legal hiring and firing, contract renewal, and evaluations are.
It’s also important to talk with your broker about your EPL policy. Many EPL policies include a free legal advice service. If your school doesn’t have a lawyer on retainer, you can utilize your EPL policy’s service.
Here’s a good article on how to reduce EPL claims. This doesn’t substitute the need for you to talk with your broker and your school’s lawyer, but it might give you some additional insight on claims and costs.
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