Tips for Preventing Liability in Employment Practices

staffing insurance

If you work in a staffing agency, you know that the hiring process never ends. It’s the business you’re in, of course, so the recruiting, interviewing, paperwork and placement are all part of the day-to-day bustle. With employment being your primary business function, you have to maintain strict compliance with all laws governing employment practices. Failure to do so can result in some privacy lawsuits and hefty fines. Here are ideas for minimizing your risk and employing associates the right way.

Maintain Immaculate Documentation
The greatest threat to your business comes from within. If you fail to maintain documentation on every candidate you recruit, interview and hire or do not hire, you are leaving yourself vulnerable to justifiable legal action. Employment practices suits are typically based on an accusation of discriminatory hiring, so it is essential that your documentation show this is not the case.
Find Insurance That Provides Coverage
In addition to maintaining excellent records, you should consider investing in staffing insurance that provides additional protection against liability. A good policy can be tailored to fit your company’s specifications and offer coverage in the case of an employment practices suit. A policy like this is the best way to ensure your agency isn’t bankrupted if the potential of legal action comes to fruition.