4. Understand employment law.

A variety of laws exist to protect the rights of employees or those seeking employment. Hiring managers throughout the organization need to take the time to understand all the employment laws that affect their business, including:

Title VII of the Civil Rights Act of 1964: Prohibits discrimination on the basis of race, color, religion, national origin, or sex. It also prohibits sex discrimination on the basis of pregnancy, as well as sexual harassment.
Equal Pay Act of 1963: Prohibits employers from paying different wages to men and women who perform essentially the same work under similar working conditions.
Civil Rights Act of 1966: Prohibits discrimination based on race or ethnic origin.
Immigration Reform and Control Act of 1986: Prohibits discrimination on the basis of national origin or citizenship of persons who are authorized to work in the United States.
Americans with Disabilities Act of 1990: Prohibits discrimination against persons with disabilities.
U.S. Bankruptcy Code: Prohibits discrimination against anyone who has declared bankruptcy.
Equal Employment Opportunity Act of 1972: Prohibits discrimination against minorities based on poor credit ratings.
Age Discrimination in Employment Act: Prohibits discrimination against individuals who are age 40 or older.

5. Consider employment practices liability insurance.

Employment practices liability insurance (EPLI) protects the company, managers, and employees against alleged wrongful acts like wrongful termination, discrimination, sexual and workplace harassment, failure to hire or promote, retaliation, and employment-related invasion of privacy.

Instant Insights /

5 Tips to Shield Your Business from Employee Lawsuits

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