America today seems incredibly divided. In politics, culture andeven sports, the 24/7 news cycle spotlights conflicts thathighlight our differences rather than our likenesses.

Despite this climate, each day, most of us have one basic thingin common: We go to work.

Related: Why diversity matters

What happens after we get there is not always smooth. We bringour unique beliefs, attitudes and experiences with us to the job.And while diversity in the workplace is something we should strivefor, the changing mix of cultures and perceptions can causefriction and complaints.

Employment practices liability insurance ischanging and responding well to this evolving workplaceenvironment, but there are challenges ahead for both employers andtheir insurance carriers. Let's look at some of the factors thatare bringing new risks and responsibilities to business owners.

Uncertainty over federal employmentpolicies

With the election of November 2016, political observers suggestthat President Donald Trump is more "employer friendly" than pastadministrations. So far we know the President has called for lessgovernment regulation, and will likely look closely at minimum wagerequirements.

In the future, immigration requirements might include the use ofa nationwide e-verify system for guest workers.

There also could be changes in the enforcement practices of theOccupational Safety and Health Administration (OSHA) and EqualEmployment Opportunity Commission (EEOC).

Related: 4 diversity challenges stifling insuranceinnovation

States take the lead in workplaceregulation

Although federal policies are still important to employers, thestrengthening of state employment laws and enforcement efforts havebecome the dominant force in the workplace. State laws are oftenbroader than federal laws and we have seen dramatic changes inworkplace enforcement over the past several years as the statesshape employment regulations in the United States.

Some of the employment issues the states are focusing oninclude:

• |
  • |
    • |
      • Paid leave and family leave. Several statesare expanding leave programs, which can directly impact smalleremployers with limited staffing options and limited resources.
      • Equal pay. States are focusing more on equalpay, highlighting the need for gender and sex equality within theworkplace.
      • Overtime rules and overtime pay. States arestrengthening overtime regulations, whether by mandating minimumwage pay or setting overtime rules.
      • Background checks. States continue to bancriminal history questions on employment applications. As a result,the questions are asked later in the interview process in order togive candidates a better opportunity at obtaining theposition.

Employment law is increasingly "local"

The recent interactions between the states and the federalgovernment around major policy issues such as pollution controlsand the Paris Agreement on climate change illustrate a clear pathfor state laws in the future — that regardless of federal law, theindividual states are going to do what they feel is in the bestinterests of their citizens.

Often, in the case of employment law, that means enacting stateregulations that are much more employee friendly than employerfocused, with broad reach into new and emerging causes of loss thatemployers may not fully grasp. Employment law is also becomingincreasingly "local" and the impact of city or county regulationson businesses should not be overlooked.

The landscape for employers and insurers is changingrapidly, driven in part by significant shifts in claim activity.(Photo: Fotolia)

The country is changing, so are theexposures

Even as longstanding types of complaints such as sexualharassment are still prevalent, newer categories like bullying areexpanding. LBGT-based (lesbian, bisexual, gay andtransgender) discrimination claims increased 118 percent from2013. Color-based discrimination charges have risen 9.5 percentfrom 2015 and 190 percent from 2006.

Related: 4 steps businesses can take to be inclusive oftransgender employees

Another developing exposure for employers is websiteaccessibility. If you have a website, you should be thinking aboutaccessibility guidelines, since an increasing number of demandletters have been sent to businesses by plaintiff attorneys andadvocacy groups. They claim some websites are not accessible toindividuals with disabilities, consumers with hearing or visuallimitations for example, so they can't access the site and conductbusiness like other customers.

Title III of the Americans with Disabilities Act provides forequal access for persons with disabilities in places of publicaccommodation. Yet, the ADA was signed into law in 1990, a yearbefore the World Wide Web became available to the public. Claimactivity has picked up over the issue and it could createuncertainty for businesses and other employers because of the lackof clear guidance from the ADA or the U.S. Department ofJustice.

The right tools to embrace today'sworkforce

Employers, risk managers, insurance agents, insurance carriersneed to be well versed in changing state and federal employmentlaws. Business owners should talk to their agent or broker to makesure they have appropriate protection with employment practicesliability insurance. That coverage should include robust lossprevention services, legal expertise, and other best practices tohelp prevent and defend against employment-related claims andlawsuits.

With the right mix of company standards, employee training, andworkplace safeguards, our strong, diverse workforce and hard-workethic can be embraced and encouraged. Employment practicesliability insurance can help provide the proper risk managementtools to navigate the confusion and uncertainty around our changingworkforce and evolving employment laws. 

Todd Cincotta is vice president, strategic products, at TheHartford Steam Boiler Inspection and Insurance Company. He can bereached by sending email to [email protected].

The opinions expressed here are the writer's own.

See also:

Diversity in insurance: beyond thequotas

Hiring and firing practices can helpprotect employees from workplace violence