Employment Practices Liability
The Employment Practices Liability program provides coverage for employment related lawsuits, such as wrongful termination and discrimination, through participation in the Employment Risk Management Authority (ERMA). ERMA provides $1,000,000 in employment practices liability coverage and additional coverage is available through PRISM, PERMA’s excess insurer for liability coverage.
ERMA distributes a biannual letter (see sidebar) advising of updates, announcements, and other information the pool believes are of interest to ERMA members. The document also includes a Quick Reference Handbook to provide information regarding the various service offerings, important information regarding AB 1825 and SB 1343 compliance, claims reporting, and contact information for ERMA staff.
ERMA also provides up to $2,500/year to members for reimbursement of employment practices-related trainings as long as funds are available. More information is available on ERMA’s website.
Claims must be reported in accordance with ERMA’s memorandum of coverage. Claim reporting forms, the approved defense panel, and the approved investigator panel are available on ERMA’s website. When emailing claims to ERMA, copy PERMA’s claim intake email claims@permarisk.gov because PERMA has an obligation to report to PRISM.
ERMA’s MOC contains reporting requirements as well as the following definition:
“Claim” means oral or written notice to the Covered Party that an Employee alleges a Wrongful Employment Practice.
Claim does not include a Union Grievance, or any type of criminal proceeding, or any claim arising under the FLSA or any California Wage Orders or any similar federal or state law. Claim does not include a dispute arising out of a contract for employment between the Covered Party and any individual or Employee, including but not limited to any dispute regarding the validity or enforceability of such contract.
Claim does not include an internal administrative or disciplinary proceeding pursuant to the terms and conditions of employment.
PERMA members are eligible to receive free legal advice for specific questions related to day-to-day employment issues, leaves of absence, harassment allegations, or terminations.
ERMA:
Eligible: Members that participate in the employment practices liability coverage through ERMA
Service: The Attorney Hotline offers one (1) hour of free legal advice, every month.
Contact: See page 9 of the member assignment list to determine which law firm your agency has been assigned, then use the phone number found on the ERMA website
PRISM:
Eligible: All members (mention you are a PRISM member through PERMA)
Service: Labor Law/Employment Practices Services provides unlimited telephone calls or email communication with Eyres Law Group to answer employment law questions as they arise. Topics can include return to work issues, modified duty and reasonable accommodations, leave of absence management and tracking, harassment and retaliation prevention, discipline, policy enforcement, and other employment law issues. PRISM’s data scientist recently performed an EPL study and learned members who use this service experienced a reduction in claim severity compared to non-users.
Contact: Patricia Eyres, Eyres Law Group, peyres@eyreslaw.com or (602) 488-4051
For program documentation not listed below, please contact ERMA directly.