Innovations

Employment Practices Liability at UW
Continuous Learning and Improvement Reduces Risk

Shari Spung

The Office of Risk Management plays a key role in managing the University’s employment practices liability (EPL) risk. It does so through the process of continually looking for ways to communicate lessons learned to avoid future EPL complaints, claims, and lawsuits.

EPL Complaint Resolution Options

When an individual raises concerns that a University employee has engaged in discrimination, harassment or retaliation, the University offers three options for resolution. The first option recognizes that some concerns can often be dealt with effectively and efficiently at the local level by a supervisor or manager or with the assistance of Human Resources. The individual can also take their concerns to the University’s Ombudsman or to UCIRO, the University Complaint Investigation and Resolution Office, part of Risk Management, for investigation and resolution.

UCIRO: Decreases Claims and Lawsuits and Increases Learning

UCIRO assigns an Investigation and Resolution Specialist who will objectively investigate the complaint to determine pertinent facts. Where possible and appropriate, UCIRO works with the department and the individual to resolve the issue. Regardless of the outcome of the investigation, both the individual raising the concern and the department have the satisfaction of knowing that a thorough investigation was done. Sometimes there was no policy violation but there may have been other actions which may have been inappropriate, misunderstood, or better avoided. In any case, the department has the benefit of learning from the investigation so that changes and learning can be put in place to avoid a future complaint.

Since its inception in 1994, UCIRO has had the effect of reducing claims and lawsuits against the University by seventy percent! We have learned that many employees who have made these complaints are satisfied with active listening, objective fact-finding, and appropriate handling and closure of the complaint.

Claims and Lawsuits: More Opportunities to Increase Learning and Avoid Risk

Sometimes complaints of illegal employment practices go beyond or even bypass the opportunities for resolution mentioned above and result in claims or lawsuits against the University. The Office of Risk Management investigates and manages these cases through its Claims Services Program. After the case is closed, the Claims Services staff conducts a “Lessons Learned” session with the key players involved to review what went well, what could have been better, where the department may be vulnerable to future claims, and remedial actions that should be taken.

The University’s Reinsurer: Education and Avoidance Tools

The Office of Risk Management self-funds EPL risk up to a certain threshold, and purchases reinsurance to cover any risk above that threshold. Our re-insurer specializes in insuring Universities and Colleges nationwide. They offer us significant resources, including risk avoidance publications, educational teleconferences, legal bulletins, seminars and workshops, and claim consulting. Materials from their website are shared with other key departments at the University involved in managing EPL risk, including Human Resources, the Attorney General’s Office, and those departments which have generated a higher volume of EPL complaints and claims.

PBI’s EPL Subcommittee: Lessons, Data, and Getting the Word Out

Portage Bay Insurance (PBI), the University’s captive insurance company, has an EPL Subcommittee which reports to its Board of Directors. It consists of representatives from Risk Management, UCIRO, HR, the Attorney General’s Office, School of Medicine, Arts and Sciences, and Facilities Services. The Subcommittee meets five times a year and focuses on ways to reduce EPL risk at the University. The Subcommittee reviews annually the latest data on complaints, claims, and lawsuits and targets risk reduction efforts in those departments which show significant activity. The Subcommittee also sponsors an outside audit of employment procedures, practices, and policy every few years, and spends much of its time implementing recommendations from the audit to further improve our EPL risk.

Risk Management’s EPL “Road Show”

The Office of Risk Management recently developed a short training presentation for departments on how to avoid EPL risks. The training is available upon request and will be targeted at those departments which generate EPL complaints and lawsuits. Already, several departments have requested the training as a way to avoid a complaint or claim in the future.

The Office of Risk Management and the University have continued to evolve in the management of EPL risk. There will always be more lessons to be learned, more communication to be done, and more legal changes to which to adjust. Through continuous learning, we expect to continue to keep complaint, claims and lawsuits minimized.