Uncategorised

As you may already have learned as a business proprietor, employers are exposed to the risk of lawsuits every time they take action related to their employees. One way to minimize the financial impact of employee lawsuits is through Employment Practices Liability Insurance (EPLI). EPLI is specialized insurance designed to protect against loss incurred in litigating wrongful employment practices claims by covering the costs of a company’s legal fees, as well as costs for settlements and judgments.

Employment agreements should be used sparingly by employers, otherwise you may find it difficult to terminate the employee who signed the agreement or to change the terms of their compensation or benefits, and you may open yourself up to breach of contract claims.

Whenever a client asks me to prepare a severance agreement for a departing employee, the first thing I ask is if the employee is 40 or older.  This is important because severance agreements for employees who are 40 or older must comply with the Older Workers Benefit Protection Act (OWBPA), which specifies the minimum requirements for a release of claims under the Age Discrimination in Employment Act (ADEA).