discrimination Eliminate at your business

By Lenelle Duecker Vice President TriWest Insurance Services/USl Sherman Oaks. Ca.

SEXUAL harassment, discriminaL)tion and wrongful termination are issues facing every business which employs human beings.

These claims are no longer covered under your General Liability or Workers Compensation policies-and they are growing. From 1992 to 1996. sexual harassment lawsuits rose l60Vo, while jury awards for them rose 250Vo! It takes a lot of sales to pay attorney fees, settlements, and your time in collecting data to defend yourself.

Discrimination and wrongful termination suits (age, gender, ethnicity, etc.) are also on the rise. So, do you need to buy an Employment Practices Liability (EPL) policy to protect your business?

Let's focus on sexual harassment since it is both frequently misunderstood and on the increase. What exactly constitutes sexual harassment? Some cases are clearimproper touching, lewd comments, unusually suggestive pictures, pressure to go out socially.

Other forms are more subtle and in those cases the courts have usually found in the claimant's favor. Ninety-five percent of all cases fall into the "Hostile Environment" category, defined as "conduct which interferes with an employee's work or is perceived as creating an intimidating, hostile or offensive work environment."

As a business owner or manager the last thing you want is a good employee operating at less than capacity due to the unwant- ed, inappropriate actions of another employee, correct?

Consider this viewpoint accepted by the experts-sexual harassment is not about sex, it's about control. If the alleged perpetrator is a manager, is this your corporate style? And if it is not a manager, do you allow one employee to control another? Either way, sexual harassment is not good business.

Here are three rules of thumb for you and all your employees:

(l) Would I want my words/actions published on the front page of the paper?

(2) Would I say/do them to my spouse, parent, child?

(3) Do they further business?

If you cannot answer yes to all three, then do not do it or say it. While you cannot control another (though you will be legally liable for their actions), nor prevent fraudulent suits, you can develop a strong management plan to protect your business.

Here are some components: o Publish a policy statement which forbids actions which are illegal: harassing, discriminatory, unfair. Have employees read and sign off. Repeat your message annually. o Provide a clear path for the vic- tim to follow in reportin g infractions.

From 1992 to 1996, sexual harassment lawsuits

rose 160%, while jury awards for them rose 250%.

o Supply training to managers on how to deal with incidents. An insensitive supervisor can turn a splinter into an amputation very quickly. o Conduct confidential meetings with the claimant to collect data, then interview witnesses and the alleged perpetrator(s). Document all meetings, conversations, etc. o Follow your corporate guidelines-mediation, write up, suspension, termination, etc. o Enforce the policy evenly on all cases.

So, do you need an EPL policy? You owe it to yourself to get quotes, discuss coverage, and have a broker who can train your managers.

Do not wait until you have a claim to investigate this subject. You owe it to your business and your employees. Do not be misled-an employee engaged in harassing (or discriminating) against another is not harmless. He or she is already costing you profit dollars, and the potential for an ugly claim is growing.