Employment Practices Liability The outlook for Employment Practices Liability remains steady. Despite insurers' concerns about declining profitability, political uncertainty and economic challenges, insurers continue to demonstrate strong interest in providing capacity. This suggests that rates will likely remain unchanged from the fall report, with flat to -5% being easily attainable in the market.
EEOC Activity: EEOC activity continues to rise, reflecting a consistently complex employment landscape. State-Specific Legislation: The increase in state- specific legislation poses compliance challenges for multi-state employers. Biometric Privacy Compliance: Compliance with biometric privacy laws will remain difficult due to the absence of federal employee privacy legislation to establish a clear national standard. Impact of Administration Change: The new administration’s policies may weaken worker protections, such as bargaining power and benefits for independent contractors, though the full impact remains to be seen.
LGBTQ Protections: The rollback of protections for LGBTQ individuals by the current administration, including healthcare non-discrimination protections under the Affordable Care Act, complicates compliance for employers operating in multiple states with varying laws. EEOC Clarification: The EEOC has clarified that DEI initiatives cannot override legal prohibitions against using race, sex and other protected characteristics in employment decisions. EEOC & DOJ Guidance: On March 19, 2025, the U.S. Equal Employment Opportunity Commission (EEOC) and the Department of Justice (DOJ) released new guidance on DEI and workplace discrimination, aiming to clarify how DEI initiatives can be implemented without violating anti-discrimination laws.
The additional guidance documents from the EEOC and DOJ regarding “unlawful discrimination” related to diversity, equity and inclusion may either improve the landscape for Employment Practices Liability or complicate it further.
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