Small businesses face many challenges, and one of the biggest ones today is the number of employment-related discrimination claims and lawsuits that employees file against employers.
Many of these complaints involve charges of retaliation in which employees claim they were punished for alleging discrimination, or for participating in a discrimination proceeding against the employer.
In its latest report, the U.S. Equal Employment Opportunity Commission ays it received 39,757 retaliation claims in 2015. These claims resulted in $178.3 million in monetary benefits paid by employers. Many smaller businesses paid penalties and settlements.
According to insurance data from the Connecticut-based Hartford Steam Boiler Inspection and Insurance Co., employment claim settlements can range from $27,000 to $54,000, and the amount paid for legal defense averages around $10,000.
That's a hefty price for small businesses that typically make their owners $60,000 annually.
With this in mind, Hartford Steam Boiler, which is owned by Germany-based reinsurer Munich Re, has created an infographic with tips for small-business owners to take to prevent a retaliation employment claim.
Some important tips include:
- Train managers and employees to understand and follow employment laws.
- Follow changes and updates in laws and employment regulations.
- Cover the business with employment practices liability insurance.
See HSB's full list of prevention tips in the infographic below.
(Click image to enlarge.)
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