Common Employment Practices Liability Myths
Posted on: August 25, 2015 by Signature Insurance Group

When it comes to a disgruntled former employee or applicant, business owners must understand the liability risks they face. The financial toll that can take place if your company is not covered with Employment Practice Liability Insurance (EPLI) can be devastating. Along with making sure that you have the best Southern California EPLI available, you should be aware of some of the most common myths about employment practices.
MYTH 1: Salary Employees Are Exempt
While ‘salary’ is a form of exemption, there are many other requirements that truly make an employee ‘exempt’. They may not be able to file overtime grievances, but that doesn’t mean that they aren’t entitled to interest, penalties and more. Assuming someone is exempt due to a salary status could be a costly mistake.
MYTH 2: Working From Home After Hours Doesn’t Require Pay
Non-salary employees must be paid for every hour that they work. This means that if an employee is at home after hours answering emails or making calls for the company, they are entitled to compensation.
MYTH 3: “1099” is Okay for Short Term Employees.
1099 is an IRS form that is used to document money paid to independent contractors. An employee is an employee whether they work for you for a week or a year and they require payment via payroll and a W-2 form. Misclassification can lead to back taxes and other fees.
MYTH 4: My Company is Small and My Employees are Like Family.
Even if your employees are actually family members, when times are tough and stress is high, a lawsuit could still occur. Small businesses with close-knit staff are just as vulnerable to employment claims as a large corporation. The only difference is that a small company usually doesn’t have the resources to rebound after a large settlement like a corporation does.
The fact is that no matter how large or small your company is there are risks when it comes to employment practices. To ensure you and your company are safe from any allegations against your company it is always a wise choice to make sure you have a good EPLI plan is place.
At Signature Insurance Group, we understand the importance of making sure you and your business are protected. Call us today to find out how we can help you find piece of mind with the correct EPLI policy. 855.972.9437
Posted in: Business Insurance Employment Practices
Archives
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
Categories
- Auto Insurance
- blog
- Business Insurance
- Commercial Auto
- Commercial Umbrella Insurance
- Condo
- Condo Insurance
- Cyber Liability
- Earthquake
- Employment Practices
- EPLI
- Errors and Omissions Insurance
- Flood Insurance
- Homeowners Insurance
- Insurance
- Management Liability
- Motorcycle
- personal auto
- Press Release
- Renters Insurance
- Southern California
- surety bonds
- Uncategorized
- Vacation Home
- Workers Compensation
Recent Posts
- Your Company’s Website May Actually Be an E&O Risk
- 4 Common Perils Business Interruption Insurance Can Help You Get Through
- Strongest Earthquake in 5 Years Rattles Southern California: Is Your Business Protected?
- Suspension of 227 CA Medical Providers Highlights the Need for Workers’ Comp Fraud Prevention
- 4 Insurance Products for Better Risk Management