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Are Your Clients Covered?

California has enacted the first of its kind “Equal pay for equal work” law. In part the law states

“1197.5. (a) No employer shall pay any individual in the employer's employ at wage rates less than the rates paid to employees of the opposite sex in the same establishment for equal work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions, except where the payment is made pursuant to a seniority system, a merit system, a system which measures earnings by quantity or quality of production, or a differential based on any bona fide factor other than sex."

There will be years of court decisions to decide what this really means in the “real world.”
One of the important penalties under the new law is:

"(g) Any employee receiving less than the wage to which the employee is entitled under this section may recover in a civil action the balance of the wages, including interest thereon, and an equal amount as liquidated damages, together with the costs of the suit and reasonable attorney's fees, notwithstanding any agreement to work for a lesser wage."

If any of your clients are not currently carrying Employment Practices Liability Insurance, we suggest that your standard practice should be to get a quote for them; and get a written confirmation if they decline to purchase.

There has been more than enough reason under existing federal and state law to carry EPLI, but, in view of the new law, not carrying EPLI is equivalent to not carrying property or liability insurance.

We work with 5 “A” rated carriers who write EPLI. They also offer risk management help that can avoid claims.

Click here for the EPLI EZ-App to start the quote process.

For more information: commercial@amqts.com or (800) 234-6977 ext. 220.

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