Employment Practices Liability Insurance (EPLI)

Running a business means managing employees fairly and legally – but even with the best practices in place, disputes can arise. Employment Practices Liability Insurance (EPLI) helps protect your company from costly lawsuits related to wrongful termination, discrimination, harassment, wage and hour disputes and other employment- related claims.

What Is Employment Practices Liability Insurance?

EPLI is a type of business insurance that covers claims from employees (or job applicants) alleging violations of their legal rights in the workplace. These claims can be complex and expensive, making EPLI an essential safeguard for businesses of all sizes.

Common Claims Covered by EPLI:

• Wrongful Terminations – Claims of unfair dismissal, retaliation, or breach of contract.
• Discrimination – Allegations based on race, gender, age, disability, religion or other protected characteristics.
• Sexual Harassment – Accusations of inappropriate conduct of failure to address complaints.
• Retaliation – Claims that an employee was punished for reporting misconduct or exercising their legal rights.
• Failure to Promote or Hire Fairly – Allegations of unfair treatment in hiring or advancement.
• Wage and Hour Disputes – Claims involving unpaid wages, overtime violations, or employee misclassification.

Wage and Hour Disputes: A Growing Concern

Wage and hour disputes are among the most common and costly employment-related claims. These lawsuits often arise when employees believe they have been improperly classified, underpaid, or denied overtime compensation.

Common Wage and Hour Issues: 

• Unpaid Overtime – Employees claim they worked extra hours but were not compensated correctly.
• Employee Misclassification – Independent contractors or salaried employees claiming they were wrongly classified to avoid overtime pay.
• Minimum Wage Violations – Allegations of not meeting federal or state minimum wage laws.
• Meal and Rest Break Violations – Claims that employees were not given legally required breaks.

These disputes can lead to class-action lawsuits, resulting in significant financial penalties for businesses. While not all EPLI policies cover wage and hour claims, some insurers offer endorsements or add-on coverage to help to protect you. This should be negotiated at the time of your application process.

Our staff at AnderGray Insurance Services is experienced with EPLI coverage and the insuring forms. Please contact us at (213)769-8001 or [email protected].