Employment Claims Surge: Employers Brace for More in 2023
A new survey reveals a surge in employment-related claims, with employers bracing for even more in the coming year. The report highlights key concerns, strategies to mitigate risks, and the significant impact these claims have on businesses.
The survey found that 69% of legal and HR professionals have dealt with employment-related claims in the past 12 months. Top concerns include wage and hour issues, breach of employment contracts, use of AI in HR, and workplace harassment. The increasing use of AI in HR and legal and ethical questions surrounding it are driving many of these claims.
Respondents also expressed concern about diversity, equity, and inclusion-related claims. Employers are taking steps to mitigate these risks, with 69% planning to strengthen employee education and training on AI use, data privacy, and workplace harassment. However, the search results did not specify companies considering EPL insurance within the next twelve months, though it's a risk mitigation strategy for companies in high turnover or litigation risk sectors.
The consequences of these claims are severe. Financial costs, damage to reputation, and loss of employee morale are significant. Resolving claims typically takes between three to six months. Adding to the challenge, 42% of respondents expect the frequency of claims to rise in the next year, with return-to-work policies also contributing to the increase.
The survey paints a clear picture: employment-related claims are on the rise, driven by concerns about AI use, wages, harassment, and diversity. Employers are taking proactive steps to mitigate these risks, but they must also prepare for potential increases in claims and their significant impacts on business operations and reputation.
