Part of being a business owner is protecting your employees from harassment and discrimination. Due to the climate of the current society, including social media and the protection of free speech, this can prove to be complicated. One way to help combat the risk associated with harassment and discrimination is to have a policy in place. A harassment, discrimination, and retaliation prevention policy is a written document, usually an attachment to an employee handbook, that describes what these things are and how they will be handled in the workplace.
A harassment, discrimination, and retaliation prevention policy should include what actions will be taken by you, as the employer, should harassment or discrimination be determined to have occurred. Not only will this help to deter the behavior, but it will protect your business if a lawsuit should occur. While you can customize your own written policy, your state may have specific requirements, which we will outline below.
Be sure to check with your state department, usually the labor board, to determine what your harassment, discrimination, and retaliation prevention policy needs to have included in it. It can vary, but the most common requirements include
As an employer, you must make your employees feel safe while at work. Additionally, they should feel like they can come to you, or whomever they are instructed to if something is happening that makes them uncomfortable without fear of retaliation. Merely having the written policy in effect can give employees a feeling of safety, knowing that these issues are at the forefront of your mind. Plus, it will make employees think twice before committing such behavior, knowing that you have a policy that they have hopefully signed and agreed to abide by.
A highly recommended insurance policy that covers harassment, discrimination, and retaliation is Employment Practices Liability insurance or EPLI. Not only does it cover these hot topics, but also wage issues, wrongful termination, breach of contract, and several other issues that can arise when you have a business with employees. It is important to note, however, that with all the available coverages, the most common claims are for harassment, discrimination, and retaliation. Even if you do nothing wrong, which these days is often the case, it will help pay for defense costs. A small business, or even a new one, could be at a higher risk because you may think you don't need this coverage. Unfortunately, even small businesses that consist of family members have seen some of these claims.
If your employees understand your stance on harassment, discrimination, and retaliation from the get-go, they will be less likely to commit such behavior. Having a written policy in place accomplishes this as they can see it in black and white. Having clearly outlined what the action means, how to report it, and the steps that may be taken (firing, suspension, etc.) can help to deter the harassment or discrimination. It will also help to prevent retaliation from higher-level employees since your policy clearly states it is not acceptable.
If you don't have a harassment, discrimination, and retaliation prevent policy in place, act now. Also, give your insurance agent a call as soon as possible to discuss Employment Practices Liability insurance. Even with the best-written policy in the world, someone could still be offended by something and claim harassment or discrimination, and you want to be able to defend yourself at the very least.