When Does My Company Have EPL Exposure?
Companies have EPL exposure at almost all times, including:

When they INTERVIEW
When they HIRE
When they DO NOT
When they EMPLOY
When they PROMOTE
When they DISCIPLINE
When they PAY
When they TERMINATE

How Frequent Do EPL Claims Occur?
In California, the likelihood of an Employment Practices Claim being filed is quite high. In fact, it is really not a matter of ‘if’ a claim is filed against your company, but rather a matter of ‘when.’

Some statistics about claims against employers in the state of California include:

• California leads the nation in the number of employment allegations leveled against employers
• Half of all lawsuits filed against employers are employment-related
• California has the largest number of lawyers of any state as well as the highest ratio of lawyers to citizens.
• California labor and employment laws are the broadest in the nation.

Aren’t Most EPL Claims Frivolous and Thrown Out?
Currently, plaintiffs win about 70% of all employment cases in California. However, even if you end up in the minority and no award is given the plaintiff, your attorney’s costs can still run well into the hundred thousands – or higher. EPL policies pay these defense costs.

What Is The Typical Cost of an EPL Suit?
The average cost of a suit is rapidly on the rise. In 1997, the median award was $75,000. By 2003, that number had risen to $173,000 – nearly a 125% increase.

What Can My Company Do To Protect Against EPL Claims?
There is no sure fire prevention method. A well-designed employee handbook that is enforced from the top down along with ongoing training for your managers in the areas of harassment, discrimination, ADA compliance, etc. are solid methods of trying to control this exposure. Purchasing an EPL policy is a nice safety net in the event your other methods fail to work.