Nonprofit Risk Management Resource: EEOC Fiscal Year 2014 Report

One of the best ways to manage risk is to understand where other people are running into problems.

The Equal Employment Opportunity Commission issues a report each year with all of its enforcement and litigation data. 

This report is a powerful tool to help you understand why employees are filing complaints with the EEOC.

Why is this helpful? 

Most of us have our heads buried into our work. You, me, your boss, your employees. We don’t think about employment related claims trends.

This report will help you see why employers are getting sued.

Why is it important to see why employers (nonprofits included) are getting sued?

Here are a few reasons:

  1. It will remind you to bolster your employees’ manual to make sure you address hot trends in employee complaints.
  2. It will remind you to be extra careful with the way you address the wide range of employees you have and help some of your less sensitive employees to be a little more wise in their interactions.
  3. It will remind you that nobody is immune. Even the most careful of organizations can have issues because they can’t monitor all employees, all the time.
  4. It might remind you to make sure to follow a strict procedure when terminating an employee (check your Directors and Officers Liability policy – which normally, for a nonprofit, includes Employment Practices Liability Insurance – for human resources related services. Most carriers offer such a service.

What does this report include?

First, the report – click here to go to the main webpage – includes a national breakdown of EEOC claims.

Second, the report provides a national overview of EEOC charges by statute. This table shows the various EEOC related laws that are brought to bear on various employee claims.

Third, the report provides a national overview of EEC charges by ‘basis’. The bases of charge is the more commonly recognized characteristic of the discriminatory charge (race, religion, disability, etc.).

Finally, you can look up your own state to find out what the trends are in your neck of the woods.

To sum it up… 

If you’re in charge of human resources or risk management of your nonprofit, then take some time to review this report. I think you’ll find it enlightening to see the trends year over year. EEOC charges are not, by any stretch, going away.

As a matter of fact, our directors and officers liability carriers estimate that over 90% of D&O claims are actually Employment Practices Liability claims.

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Questions? Drop them in the comments.

Need to update your Directors and Officers/Employment Practices Liability Coverage? Click here to start the online quoting process.

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