Insurance and risk Management

INSR-6008

Case Study Assignment

Study 7 - Employment Practices Liability Loss Exposures

Instructions

Employment Practices Liability Loss Exposures

1. For each of the cases described below;
   • Identify, and briefly explain, the employment practices liability loss exposure represented in the case.                  (5 marks for each case) 
   • What steps could the company have taken to protect themselves?                        (10 marks for each case)

Case # 1

Mrs. Potter, a longtime employee of Sterling Furniture, was having a difficult time closing deals.  Once a star employee, her performance had dropped considerably in the past few years.  Mr. Beasley, Mrs. Potter’s boss, informed her that there were issues surrounding her poor sales performance and her increasingly antagonistic attitude with the customers.  This eventually led to her dismissal. Sterling Furniture offered Mrs. Potter a severance package of two months pay. Mrs. Potter rejected the offer and sued Mr. Beasley, Sterling Furniture and the board of directors of the company alleging wrongful dismissal and claiming a severance period of two years based on her age, position, and difficulty finding alternative employment in difficult market conditions.

Case # 2

Ms. Henderson, the only female employee at Longterm Investment Corporation experienced difficulty in her workplace.  The other staff in the corporation, ten men, often engaged in “locker room” talk, which Ms. Henderson found offensive.  In addition, Ms. Henderson believed that less-qualified staff members were promoted ahead of her, which she attributed to a policy of discrimination against women in the workplace. Ms. Henderson’s complaints to management went unanswered and the “locker room” behavior continued.  Ms. Henderson felt that the atmosphere at Longterm Investments made it impossible for her to perform her job and that she would never be promoted ahead of a male colleague no matter how qualified she may be.  Ms. Henderson commenced a lawsuit against Longterm Investments, alleging wrongful failure to promote her and failure to address the workplace harassment.

The completed assignment should be submitted to the drop box no later than 11:59 pm on Sunday of Week 9. 

• Please include the full names of all members of your group. 
• All references to material found in the text book or the article should be sourced and your works cited. 
• Marks will be allocated as noted above. 
• Late penalties will apply at 25% per day. 
• This assignment is worth 5% of your final grade.

How to Submit your Assignment