Tag Archives: epli coverage

How A PEO Helps With EPLI Coverage And The Challenge Of Ongoing Compliance

Do you know how a professional employer organization can help your company with EPLI coverage and the challenge of ongoing compliance? Commonly referred to as EPLI coverage, Employment Practices Liability Insurance is additional insurance coverage a company can use to protect the business from lawsuits brought on by a former, current or even future employee. As part of our compliance series where we detail such challenges, Total HR Management demonstrates why your company should work with a PEO.

Importance of EPLI Coverage

In a time when entitled employees are looking for reasons to file lawsuits, EPLI Coverage is more important than ever. It allows you to sleep at night, knowing your company is safe. Total HR Management has seen several successful businesses damaged beyond repair when employee lawsuits came without the safety net of EPLI coverage. The goal of effective human resources management is to avoid such unnecessary damage.

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Three Internal Strategies To Address Potential FCA Whistleblower Lawsuits And Boost EPLI Coverage

FCA whistleblower lawsuits have become a problem across the country. In light of the growing number of False Claims Act (“FCA”) suits brought by qui tam FCA whistleblowers in 2014, it’s important for a company to have internal strategies to address potential lawsuits and boost EPLI Coverage. In 2014, more than 700 FCA whistleblower suits were filed in the United States. The Department of Justice (“DOJ”) recovered over $5 billion from target businesses in qui tam litigation.

FCA Whistleblower Lawsuits

fca whistleblower

FCA Whistleblower Lawsuits

More importantly, the “original source” precedent holding that whistleblowers must play a direct role in public disclosures in order to file suit has been abandoned. The legal precedents that once discouraged whistleblowers to file lawsuits have been reversed by a decision by the 9th circuit court. As a result, many shark-in-the-water lawyers are now encouraging employees to file such lawsuits. The floodgates have opened for more whistleblower lawsuits to be filed.

Such qui tam suits are a real danger to many mid-sized companies, particularly if they file claims with the government for payment of money. Qui tam is an abbreviation from the Latin phrase meaning, “who as well for the king as for himself sues in this matter.” Qui tam cases are different from other types of lawsuits that involve a personal stake. In qui tam lawsuits like whistleblower cases, the person bringing the lawsuit is not the one who has been harmed.

False Claims Act Challenges

This intensifying storm of FCA litigation is reason for concern to any business that files claims with the government for payment of money. By choosing to accept money from the government, a business exposes itself to potential FCA liability. With this growing risk of claims brought under the FCA’s whistleblower provisions, the stakes of losing FCA litigation are significant.

Faced with ever-increasing liability, insurance carriers are now desperately trying to close the floodgates by denying FCA insurance recovery claims. Policyholders who fail to recognize insurance company denial tactics can make the mistake of failing to believe they are covered. Luckily, by working with a professional employer organization, you can avoid such problems.

EPLI Coverage

With the EPLI coverage provided by Total HR Management, such coverage is provided. It is even more essential is to develop internal strategies within your company to avoid FCA whistleblower lawsuits.

Three Internal Strategies To Address Potential FCA Whistleblower Lawsuits:

  1. Proceed with the understanding that FCA whistleblower claims are covered.

If you work with a professional employer organization, proceed with the understanding that FCA claims are covered. In order to gain such confidence, discuss the issue with your HR manager.

  1. Implement appropriate internal procedures to flag and address qui tam-related events.

Government inquiries often arise in the course of whistleblower litigation. Evidence of such an investigation may be a very informal or seemingly run-of-the-mill request for information. Such inquiries, no matter how routine, flag an immediate need to evaluate insurance. The best time to devote legal resources to FCA insurance issues is at this early stage.

Companies should analyze the implications of complex and often contradictory notice obligations. Companies cannot conduct such a review, however, unless qui tam related inquiries are directed to appropriate personnel. To do this, policies and procedures should be put in place for employees at all company levels to identify and report qui tam-related events.

  1. Conduct annual review of policies for qui tam and FCA coverage.

A company should assess and develop a working qui tam internal strategy long before it is faced with a qui tam claim. Policies should include provisions that accommodate the unique aspects of qui tam claims, such as the fact that whistleblower lawsuits can be filed under seal, and a policyholder may not learn that a lawsuit has even been filed for several years.

To learn more about EPLI coverage for your business and FCA whistleblower lawsuit protection, contact the human resources managers and professionals at Total HR Management by calling (800) 975-5128 today.


No Legal Advice Intended: This blog includes information about legal issues and legal questions. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You must not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider.

EPLI Service Providers Mark A Recent Flood Of FCRA Background Check Class Action Lawsuits

As a provider of a shared liability solution for our client companies, Total HR Management keeps up to date by marking trends in EPLI lawsuits and class action cases. Recently, there has been a flood of FCRA background check class action lawsuits across the country. The class action lawsuits allege technical violations of the Fair Credit Reporting Act (FCRA) by businesses that conduct background checks on prospective employees.

FCRA Background Check Lawsuit

fcra background check, epli

FCRA Background Check

Even with EPLI coverage, a goal is to avoid ever entering into a legal imbroglio with an employee. James Harwood, the founder and CEO of Total HR, has pointed out how his human resources outsourcing company is, “a strategic partner that works to give our clients peace of mind every single day.” EPLI coverage is a major ingredient of that peace of mind, but the coverage alone needs to be supported with quality information and resources.

Although commercial general liability insurers have already established effective defenses against these FCRA claims, they can still damage a business. FCRA background check lawsuits tend to focus on the FCRA requirement that employers provide prospective employees with a clear and conspicuous disclosure that a consumer report may be used as part of a routine background check. The disclosure cannot be buried in the employment papers, but needs to actually be highlighted as a stand-alone statement.

Class Action Lawsuit Against Employers

In the majority of cases, the lawsuits have alleged that the “clear and conspicuous” requirement was not satisfied due to extraneous information on the disclosure form. Furthering this legal point, the class action lawsuits claim the requisite disclosure did not take the form of a stand-alone document. When litigating willful violations of the Fair Credit Reporting Act, courts across the country have tended to focus on such alleged technical violations of the statute.

Due to the available statutory damages of $1,000 per class member and the lack of a cap on the recovery of statutory damages, plaintiff class action attorneys see FCRA claims as a goldmine. Past multimillion dollar settlements have fostered a strong incentive for plaintiff class action attorneys. As a result, there is no reason for the flood of FCRA lawsuits to stop being a problem any time soon.

Definitive Need For EPLI Coverage & Protection

In light of this information, Total HR Management helps our client companies by offering to provide the FCRA disclosure forms needed in advance. If a FCRA background check is going to be used, such steps need to be immediately taken to avoid being swept up by the flood of class action lawsuits. Even with EPLI coverage, there is never any reason for a company to experience such a legal vulnerability when it can be effectively avoided.

Triumvirate Of Pasadena Leaders Reveal Multi-Dimensional Asset Protection At The Business Growth Workshop

At the latest Business Growth Workshop on June 23rd at the University Club of Pasadena, a rare triumvirate of business leaders revealed a multi-dimensional asset protection approach. Focusing on people, product and finances, Diana Peterson-More, Blake Longo and Alan Harrison each disclosed their expert perspectives on a bevy of challenges facing companies in the 21st century. While attempting to cover a tremendous amount of ground, they did manage to uncover several choice pieces of valuable information for the local entrepreneurs gathered that morning.

3 Approaches To Asset Protection

asset protection

Blake Longo, James Harwood, Diana Peterson-More, Alan Harrison

After being introduced by James Harwood of Total HR Management, the three business leaders provided a dynamic presentation where they each offered varying perspectives on a variety of challenging issues. From employee management and retirement plans to government compliance and document retention, the presentation revealed the numerous pitfalls facing companies in the modern world. Beyond federal regulations, all three presenters pointed out the difficulty of doing business in California where the state regulations and regulatory bodies offer complex difficulties as well.

As Alan Harrison pointed out from his experience working with numerous businesses, “Trying to comply with government regulation and regulatory compliance for many companies is often like trying to put a square peg into a round hole. It just doesn’t fit.” Given such challenges, the support of a professional employer organization can be a positive step in the right direction. From regulatory compliance to benefits administration, a local PEO can provide a company with the expertise that they lack.

EPLI Coverage Is Essential

asset protection

The Triumvirate at the Business Growth Workshop

Given the new challenges of both the Affordable Care Act and employee lawsuits, Blake Longo continuously pointed out the importance of EPLI coverage for a company. Employment practices liability insurance is not a choice in the 21st century, but a real necessity. As a successful insurance broker, Blake Longo commented after the session, “The insight into and access to EPLI coverage that a human resources outsourcing firm offers their clients is invaluable.”

Moreover, as an expert in skill-based hiring, Diana Peterson-More highlighted the importance of effective recruitment and selection for a company doing business in today’s marketplace. By relying on the skill of experts like the staffing specialists at Total HR Management, a company can not only hone their recruitment and selection, but also improve in the key area of employee retention as well.

Business Growth Workshop

Once again, the Business Growth Workshop at the University Club in Pasadena proved to be a truly valuable resource. By bringing in such respected business leaders, James Harwood of Total HR Management has helped to enhance the value of the monthly gatherings. In June, halfway through the year, the ground covered and the insight gained provided excitement for the next six months to follow in the ongoing series.

3 Keys To HR Outsourcing Success For Your Company

If you manage a large to mid-sized company that is looking for HR outsourcing success, Total HR Management wants to help you make the decision. Organizations often choose HR outsourcing options in order to reduce costs and minimize risks. Since the HR management options tend to be outside the organizations’ business expertise, HR outsourcing can deliver given expertise at a very reasonable cost.

hr outsourcing, he outsourcing success

HR Outsourcing Success

Unlike certain limited online variations of the HR outsourcing model, Total HR Management combines online access and functionality with a traditional brick & mortar business. As the testimonials on our website will express, our HR managers are always a phone call away. In addition, they often spend time on-site with our client companies both when problems arise, and when new updates need to be instituted.

When choosing an HR outsourcing company to work with, there are key factors that can contribute to HR outsourcing success.

3 Keys that should be highlighted:


Key #1 – Alignment with the Organization’s Strategy:

The HR outsourcing options must align with your organization’s overall strategy. If the need to outsource does not align with an organization’s strategic planning, it will not be seen as a valuable solution. Total HR Management focuses on learning about the culture and the business of your organization before offering an HR outsourcing package. Since we don’t believe in the one-size fits all mentality, we tailor our HR outsourcing options to meet the needs of your organization.

Key #2 – Effective Integration of HR Outsourcing Services:

Once a tailored HR outsourcing package is chosen, we make sure to provide the client company contacts with a good understanding of the proposed services and how they will work. Our HR managers are experts at helping to train client companies in taking full advantage of the new options, quickly and smoothly. Our goal is to help your company’s executives focus on the business of your business while gaining freedom from working in the bureaucracy of your business. From EPLI coverage to payroll processing, benefits administration to recruitment & selection, we will explain to your team how we will help and accomplish what is needed.

Key #3 – Track Record of Ongoing Monitoring:

As stated earlier, if you read the testimonials of Total HR’s client companies, time and time again you will hear from successful executives and business owners how grateful they are for the responsiveness of Total HR’s staff. By constantly monitoring our services we always make our client companies a priority, we help to prevent problems before they happen. When it comes to our services for our clients, we believe in prevention first.

If an unexpected problem does arise that needs to be addressed, your company’s HR Manager will respond quickly and effectively. If an outside vendor is needed to address the problem, our list of experts from lawyers to information technology experts is first-rate. We only work with vendors that we have personal experience with, and that we know to have the highest ratings. Addressing the needs and challenges of our clients is always our top priority.

Learn More About HR Outsourcing Success

To learn more about what Total HR Management can do for your company to achieve HR outsourcing success, please contact us today for a consultation. By learning about your business, we will be able to offer a tailored package of HR services to directly address your the needs of your organization. After all, the greater goal of our HR services is to save our clients the two most precious resources for any business: money and time.

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