One often-overlooked type of coverage protects against harassment and discrimination claims made by employees. It’s a mistake to pass on this coverage, known as employment practices liability insurance, due to the nature of the agricultural industry.
Many EPLI claims in agriculture stem from heavy reliance on seasonal and migrant labor, isolated work environments and power imbalances between supervisors and workers. Because many farms operate with informal human resources structures, they are particularly vulnerable to lawsuits alleging workplace harassment or discrimination.
EPLI may help cover litigation expenses, including legal and court fees, settlement costs and judgments. Coverage may also apply if your company is sued under bogus pretexts, which can escalate quickly.
The most frequent EPLI claims in the agricultural sector include:
- Sexual harassment: According to the International Risk Management Institute Inc., female farmworkers and migrant laborers face a statistically higher risk of sexual abuse and hostile work environments due to isolation, housing dependence and male-dominated supervisory structures.
- Wage and hour disputes: Claims involving unpaid overtime, missed rest or meal breaks, minimum wage violations and incorrect piece-rate calculations are common in the industry.
- Retaliation: Lawsuits may arise when workers are demoted, terminated or have their housing revoked after reporting safety hazards, discrimination or sexual harassment.
- Wrongful termination and discipline: These lawsuits can arise from firing or laying off seasonal and permanent workers without proper documentation or in an allegedly discriminatory manner.
- Discrimination: These claims allege unfair treatment in hiring, promotions or job assignments based on protected characteristics such as race, gender or age.
- Third-party harassment/discrimination: Employee claims of harassment or discrimination by non-employees, such as vendors, buyers or contractors visiting the farm, are also common in agriculture.
Prevention
Because of the industry’s reliance on seasonal and migrant labor, proactive risk management is essential to reducing the risk of costly litigation. Implementing the following best practices and training programs can significantly reduce a farm’s liability:
Formalize written policies: Establish a comprehensive employee handbook available in English, Spanish and any other primary languages spoken by the crew. It must clearly outline zero-tolerance policies on harassment, grievance-reporting procedures and defined break schedules.
Conduct bilingual training: Run mandatory, regular training sessions on preventing sexual harassment and discrimination for both supervisors and field laborers. Ensure the content is culturally sensitive, accessible to workers of all literacy levels and delivered in languages understood by migrant and seasonal workers.
Standardize wage tracking: Implement automated time-tracking software instead of paper logs to accurately record hours, piece-rate calculations and legally mandated meal and rest breaks.
Train supervisors: Educate crew leaders, foremen and managers that any retaliatory adverse action, such as reducing hours, changing shifts or altering housing arrangements after a worker files a complaint, is illegal and can result in significant liability.
Document personnel decisions: Maintain meticulous records of all employee performance reviews, disciplinary actions and terminations. Consistent documentation can provide vital evidence when defending against claims of wrongful termination or discrimination.
Implement secure reporting channels: Create an anonymous hotline or a trusted, neutral point of contact outside the immediate field chain of command so workers can report issues without fear of reprisal.
The takeaway
Even the best-run farm can still fall victim to charges of discrimination or harassment. These claims may be unfounded or arise from the actions of wayward supervisors or managers. Still, they must be defended in court.
So even if you have strong preventive measures, it’s important to secure EPLI coverage for your operation. Give us a call to discuss this important insurance and how your firm can benefit from this layer of protection.
