Cases against employers are on the rise. It is
estimated that three out of five firms will be
sued by an employee. Companies are finding that
they are vulnerable from the pre-hiring process
through the exit interview, even if the employee
was never hired, or only at the company a matter
It can happen to ANY firm. We have all experienced
it. It could be a joke told in the break room,
an employee you had to fire, a friendly
programmer, or that person you chose not to hire.
Every employer faces the reality that it will
be the target of legal action from past, present
and prospective employees. Even if the claim is
groundless or fraudulent, the defense of a suit
can be expensive in time, resources and financially.
New technology firms are especially vulnerable.
Newer and fast growing companies are often prey
to these types of claims because their management
team has not yet designed or implemented procedures
for hiring, firing, and disciplining employees.
We definitely recommend Employment Practices
Liability Insurance to any company that has employees.