3 Common Reasons Employers Are Sued

Valuing your employees is one of the biggest ways to ensure your bank is a successfully operated one. While you might want to allow little things to slide to be nice or to accommodate hardworking employees, cutting corners can cost you more in the long run. In this article, we’ll cover the biggest mistakes that employers make that can lead to Employment Practices Liability lawsuits. However, that’s why this insurance policy exists – to give you peace of mind and serve as your first line of defense should any claims arise.

Mistake #1: Letting employees work through their lunch breaks.

While an employee might prefer to work through their lunch so they can leave early, there are legal repercussions of doing so.

A non-exempt employee is required to be given a 30-minute meal break, plus a 10-minute break for every four hours worked. If you deny one or the other, you owe the person an extra hour’s wages; if you deny both in the same day, you owe an additional two hours. The wages must be paid during the pay period in which it’s missed. The employee cannot waive his or her right to the breaks, explains American Express.

Mistake #2: Not providing harassment training to management.

A seemingly harmless statement could turn into a hefty lawsuit very quickly. It’s up to supervisors and managers to nip this in the bud and ensure a pleasant and professional working environment. Be sure to provide ample training on what classifies as harassment for both men and women.

Mistake #3: Terminating an employee during a leave of absence.

There are plenty of reasons an employee might take a leave of absence; for example, pregnancy, a death in the family, or work-related injuries. Even if their leave is prolonged, it is unlawful for you to fire them and replace them. Remember, the law protects these individuals.

About FGIB

Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for financial entities, in addition to providing crime insurance and general business insurance products to a number of firms across the United States. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.