Employment Practices Liability

Stringent record keeping is probably a company’s best defense against claims made by employees for payroll violations and allegations such as discrimination (age, sex, race, disability) and wrongful termination.

Cases against employers are on the rise in this country and it’s just not wise to assume that “it will never happen to me”. From time to time tenured employees turn on employers. Sometimes brand new employees quit and file complaints. And sometimes even potential employees file discrimination charges.

Keeping time records and human resources records can help protect employers in these cases.

While paper records can be useful, courts trust online records with digital date stamps because neither employer nor employee can tamper with them. An online time clock such as ours software contains just such an audit trail. The records themselves can be edited and archived but the events associated with each timestamp is cannot.

  • Overtime A time clock with a complete audit trail can prove an employer’s innocence in a case against overtime violations. Our software keeps record of every single punch, edit, and archived entry. The system records when these adjustments were made and who made them.
  • Discrimination The Timesheets.com software also includes human resources documents which can record commendation, disciplinary action, and other complaints or successes noted by an employee or the employer. This way the employee and employer are always clear on where they stand, what the issues were, and when they occurred.
  • Wrongful Termination By keeping records each time there is an issue, if termination does result, there will be no mistaking the reasons as well as the length of time that the issue went unresolved.

Even if a case is groundless or fraudulent and if a company has all the records they need to save them from a guilty verdict, the legal process is still going to be costly.  Employment practices liability insurance will offer financial coverage for a firm in the case of lawsuits made by an employee. While record keeping will help a firm win the case, insurance can help a firm afford the inevitable court and lawyer costs.

Insurance and stringent record keeping can both be useful tools for a business owner.

One thought on “Employment Practices Liability

  1. Pingback: EMPLOYMENT ‘AT WILL’ « A SECOND CUP

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