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23rd Annual PLUS International Conference Special Section

Hidden risks in employment practices liability

Employers’ online procedures and rehiring processes present hazards


The current downturn in the economy is causing problems for employers across the country. Many of the issues are self-evident, such as making sales projections, getting a handle on expenses and just surviving the storm. As a result, employers must continue to monitor a number of important areas as they move forward in the economic landscape.

One of the areas that has quickly bubbled to the top of the concerns pile is employment practices liability. And as Mercedes Colwin, moderator of a PLUS meeting panel (“Watch Out! Hidden Risks of EPLI Discrimination Claims”), points out, there are many known risks regarding EPLI claims. Colwin, who is the managing partner of Gordon & Rees, LLP, says it is usually easy to identify some risks such as litigation costs, time and research that are involved with employment practices cases. “Our panel, however, is going to tackle the more difficult risks associated with these cases, the so-called ‘hidden costs.

Session overview

Colwin states that the panel has scheduled 10 areas of concern to touch upon during the presentation. Many of them involve the digital arena. The panel will discuss cyber liability, specifically, how employers use the Internet to obtain information.

For example, Colwin says, “Let’s take one simple task of hiring a new employee.” Most employers go through a typical due diligence process, but she says, “All too often, this process includes a review of social media sites such as Facebook, etc., where the employer obtains some additional information.” But, she cautions, “If you obtain information you would be prevented from getting in a face-to-face interview, you are begging for problems.”

Most employers realize that they would not be able to obtain as much information about potential employees if it were not for the Internet. However, Colwin says that the Internet also has “a very dark side as well.” Co-worker harassment is a good case in point, and this is the second area the panel will tackle. While this is an evolving area of law, most employers need to make certain that they establish “appropriate training and safeguards.”

Another growing area of concern involves “rehires and comebacks”—the exposures presented once the employer begins to bring terminated employees back to work. Colwin notes that this is another area that requires careful handling. With regard to potential ERISA claims, she says, “This can be very dangerous territory.” The panel will look at this area since, Colwin says, “This can frequently open an employer to a hotbed of employee issues when they start rehiring.”

 Conclusion

Colwin has assembled an excellent panel with a number of notable professionals in the EPLI arena. But she says that one participant in particular, Susan G. Fillichio, senior vice president of DecisionQuest, should provide some great insight on “what jurors will be like in the new economy.” Since she is a jury consultant, she will be able to provide some current background information. The panel should be able to add greatly to the body of knowledge in the important area of employment practices liability.

 
 
 

“Our panel is going to tackle the more difficult risks associated with [EPLI] cases, the so-called ‘hidden costs.’”

—Mercedes Colwin
Managing Partner
Gordon & Rees, LLP

 
 
 

 

 
 
 

 


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