Biz Views

Op-Ed: Workers’ claims against employers on the rise, exposing their businesses

Founded or unfounded, the number of complaints filed against companies alleging employment related claims are on the rise.

Due to the duality of jurisdictions under which our employer-employment laws operate, the multiplicity of rules and regulations, and a continually changing environment, there is ample room for labor complaints to come forward, exposing employers to significant financial expenses to defend themselves.

These types of claims, even when appropriate preventive measures exist to mitigate it, can harm the company, affecting its image, morale, and financial stability.

To counteract the severe economic impact that these can generate, the Employment Practices Liability Insurance policies, better known in the insurance industry as “EPL,” have been developed. This policy intends to protect the financial exposure that companies may have in the face of this growing wave of worker-employer claims.

It is essential to understand that a worker-employer claim can have a significant financial impact on a company. That’s why each employer must evaluate ensuring and protecting their company from possible labor claims.

Some of the most common lawsuits against employers in Puerto Rico include allegations of wrongful dismissal, discrimination, retaliation, and harassment-related cases, including hostile environment and sexual harassment.

The employment harassment coverage becomes particularly important with the recent adoption of the Law to Prohibit and Prevent Labor Harassment in Puerto Rico, Act No. 90 of Aug. 7, 2020, in which employees from both the public and private sectors have a cause of action against those employers, supervisors or employees who engage in conduct known as workplace harassment.

Aware of the complexity and unique challenges of all labor-related issues, AIG offers as an added value AIG Labor Consultation, a free service for all Insured clients with EPL coverage. It offers seminars and webinars on recent developments in labor legislation and risk prevention practices, as well as legal alerts that are sent by email about new laws and labor and federal amendments that may arise, to keep them informed.

AIG customers also have access to a telephone line and email address for consultation with the law team of the Jackson Lewis law firm, which is dedicated exclusively to labor law in Puerto Rico. AIG Labor Consultation is an added value that complements the policy by providing risk management knowledge before using the policy. It is available to all types of clients, from small and medium-sized enterprises to financial institutions and multinational companies from various industries.

For additional information about this or any other AIG products, you can access www.aig.com.pr or call 787-767-6400.

[EDITOR’S NOTE: This opinion piece is brought to you by AIG Insurance Company Puerto Rico.]

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This story was written by our staff based on a press release.

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