From the moment an employer hires its first employee, it assumes risks and potential liabilities, including the potential for lawsuits, employment-related disputes and compliance issues. The laws and regulations governing labor and employment relationships have complex implications. Of course, it is always better to be proactive rather than reactive. This is a practical checklist that applies to all employers regardless of industry. These recommended risk management measures will help employers mitigate exposure to future claims and help protect them and their owners.
1. EPLI Coverage
Every business should consider obtaining employment practices liability insurance (EPLI) coverage. Legal requirements can be overwhelming for employers, and what seems like the smallest mistake can expose a business to liability. Lawsuits involving employment-related disputes in fact occur frequently.
By purchasing an EPLI policy, a company’s legal costs and attorney fees would largely be covered if an employment-practices claim arises. Moreover, EPLI coverage can also minimize potential loss exposures, human resources-related expenses, and training costs.
2. Confidentiality Agreements, Non-Compete Agreements and Non-Solicitation Agreements
Restrictive covenants are beneficial legal tools to protect employers from exposure to legal claims and outline the expectations of employees and independent contractors. Restrictive covenants can help protect a business’s marketing strategies, proprietary systems, inventions, and customer lists from unauthorized use or disclosure.
The following are common restrictive covenants: