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Employment Liability at Home?
Household employers who hire residential employees should be aware of the potential risks associated with becoming an employer. Domestic employees can sue for sexual harassment, wrongful termination or employment discrimination.
Consider the following scenarios:
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The maid begins to feel like she has been sexually harassed because the husband often displays a bawdy sense of humor and tells obscene jokes.
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The wife makes a racially derogatory comment to a friend on the phone which is overheard by the employee, who is later fired.
The above examples show how accusations of harassment and discrimination - originally found in the workplace - have entered into the perceived safety of the home as well.
LIABILITY
In today's litigious society, inappropiate words from a guest to a housekeeper or a few seemingly innocent jokes can create a hostile work environment and ultimately cost a client thousands, if not millions, of dollars. According to reports from Jury Verdict Research, the median employment practices settlement for 1999-2005 was $75,000. Even if the allegations are false, substantial defense cost averaging more than $100,000 can result. With today's shrinking economy, some homeowners may decide they need to trim their domestic staff. Letting employees go may open homeowners to wrongful termination lawsuits. To help avoid a suit, a written agreement between homeowners and employees should contain an "employment at will" clause that allows termination without cause for any reason.
EMPLOYERS' RESPONSIBILITIES
Homeowners must recognize that they become employers the moment a domestic employee first walks through the front door. Household employers need to clearly communicate their expectations and keep a well-organized and documented human resources file on every employee. Proper background checks, well beyond simple Internet research, are recommended for anyone working in the home.
EMPLOYMENT PRACTICES LIABILITY EPL insurance can provide coverage for settlements, legal fees and jury awards for insured employers accused or convicted of wrongful employment acts. Homeowners and umbrella policies exclude employment-related exposures. Homeowners need to develop an employee handbook to share with all employees and to educate family members about proper conduct in the employer/employee relationship. |
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