The Insurance Family Blog

Restaurant Hiring Practices Bring Scrutiny

Posted by Susie Scherff on October 17, 2011 at 12:34 PM

Recently a national restaurant chain was hit with a lawsuit from the U.S. EEOC alleging that the chain’s hiring practices discriminated against older workers.  At Sutherland-Scherff we specialize in restaurants and take a wide view of the risks facing your business. 

Employment practices liability insurance (EPLI) was developed in the early 1990s in response to societal trends.  Millions of small businesses, and large, now buy EPLI coverage but many miss out on the additional benefits that are offered by some insurance companies.

For example, many of the underwriters who specialize in EPLI are happy to have their law firm review your employment application forms and hiring practices.  It’s less expensive for them to help you avoid a lawsuit than to react to one. 

Furthermore, some carriers will also offer free training services for your management team to reduce poor employment practices within the company.  Had the restaurant group in question in the lawsuit been proactive, they could have done an internal review, with their insurance company, of the results of their hiring practices and perhaps identified this situation before it mushroomed into a lawsuit.  An ounce of prevention is worth a pound of cure in this case.   

Protect your food service business with the professional services of Sutherland-Scherff insurance agency.  We will help you review Employment Practices Liability Insurance and select the right insurance company – including those that provide the type of valued-added services that can prevent the next lawsuit.

Please contact us today at 888-400-1133 to discuss other ideas for protecting your business.

Topics: Restaurant, EPLI, employment law, employment practices, age discrimination, Employment practices liability insurance, restaurant law, restaurant hiring practices