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Employment Practices Liability

What is the definition of Employment Practices Liability?

EPLI coverage is defined as: Wrongful termination of employees; discrimination, including sexual harassment; personal injury arising out of employment practices; unfair employment practices, including but not limited to: wrongful failure to promote or employ; wrongful discipline or demotion; negligent performance evaluations; employment related misrepresentation. 

Myths about Sexual Harassment

  • Conduct must be sexual to constitute sexual harassment.
  • Unwelcome is the same as involuntary.
  • Sexual harassment requires a bad intent on the part of the harasser.
  • Liability is limited to conduct by supervisors and managers.
  • The employer is not responsible for harassment by a third party.

Every church should have an anti-harassment policy, which includes:

  • The definition of harassment, including a list of examples
  • Contact persons with whom to report an incident.
  • Policy should clearly state there is no repercussion for making a compliant or claim
  • The policy should provide confidentiality to the claimant and accused. 

It is not good enough to have a well-written policy. This policy must be distributed to all managers; supervisors and employees, signed and kept in their personnel files. The policy should be practiced fairly and consistently with all employees. Otherwise it is damaging to have a policy and not use it.

Once an allegation is made, the employer has 24 hours to begin an investigation. Within a month a decision should be made to pursue further or close the file. Keep a detailed documentation of all conversations and information collected during the investigation process. The claimant should be made aware of the basis for the decision.

Four Common Causes of Employment Practices claims:

1.  Discrimination

    Race
    Sex
    National Origin
    Ancestry
    Creed


Religion 

Disability
Marital Status
Sexual Orientation
Age

2.  Invasion of Privacy
3.  Contract related Violations
4.  Negligent Hiring

General Guidelines for Management:

  1. Be responsible for your own conduct.
  2. Monitor the work environment in order to recognize sexual harassment situations as they develop.
  3. Take complaints seriously.
  4. Contact human resources.
  5. Investigate the complaint immediately.
  6. Take corrective action.
  7. Follow-up with the compliant.
  8. Ensure your employees are aware of your church policy against sexual harassment in the workplace.

Title VII of the Civil Rights Act of 1964

Title Vii of the Civil Rights Act of 1964 permits churches and religious organization to inquire about a potential employee’s religious beliefs if that is a requirement of the job description.  Churches with 15 or more employees who work for more than 20 weeks of the year fall under the jurisdiction of the Civil Rights Act. 

© 2005-2007 Covenant Presbyterian Insurance Program, Inc.