Employment Practices Liability Insurance High Risk of Testing Applicants

employment practices

Employment Practices Liability Insurance High Risk of Testing Applicants

According to Travelers Insurance RiskManagement Plus+ Online article it appears another employee practice that should be instituted is careful testing of your applicants to avoid insurance claims. The EEOC sued Ashley Distribution Services because they refused to hire an applicant because of fears about the applicants ability to safely perform their duties. They were seeking back pay, compensatory damages, punitive damages, and injunctive relief. Richard Craver “EEOC sues Ashley Furniture affiliate over local discrimination claim” www.journalnow.com (Apr. 27, 2018).

In the above situation your Employment Practices Liability Insurance would respond. The suit filed by the EEOC alleged the employer regarded the applicant as disabled. The employer request a medical exam at which the applicant advised that he had a rotator cuff injury. The employer then required him to take an additional  exam to determine if fit for duty. The exam results were not released but the employer did not hire the applicant.

Keep in mind that you may offer a job on condition of the results of a medical examination, provided the same examination is required for all applicants applying for the same position, regardless of disability.

A few good Employment Practices Liability Insurance risk management hiring practices to avoid claims related to discrimination, are:

  • asking questions that are likely to reveal the existence of a disability before making a job offer
  • refusing to provide a reasonable accommodation for an applicant who requests for accommodations during the interview process, barring any hardship that would be imposed on the employer
  • treating applicants who disclose that they have a disability less favorable than other applicants
  • making employment conditional on passing a medical exam if the exam is not job-related or necessary
  • making assumptions about a prospective employee’s ability to work based on a perceived disability
  • or withdrawing a job offer solely because you discover an applicant has a disability


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