The effects are more far-reaching than merely purchasing insurance, however. For instance, when companies purchase EPLI their internal procedure and policies are subject to exam by insurance companies that require reviews and audits concerning the training of managers and supervisors, employee handbooks on discrimination policies, and other human resource procedures and policies. While employees often claim they are victimized by discrimination, before 1991 they were only adapted to sue for back pay, lawyer's fees and possible reinstatement.
However, the Civil Rights Act of 1991 " send teeth into discrimination and harassment lawsuits, allowing recovery of up to $300,000 in punitive and compensatory damages" (Dobie 1
The emerging number of discrimination cases does not bode well for the forthcoming of firms, because one of the effects of such charges is increased federal, state, and local regulation and agencies designed to assist and support employees who make such allegations. One particular agency, the Office of the Special Counsel, was instituted to ensure that no U.S. citizens are subjected to discrimination during the hiring process. One company, Agripac, found out the hard focusing that the Office of the Special Counsel means business. Agripac potential employees who were alien born or appeared foreign to those in charge of hiring allege that their documents and papers were scrutinized more than those of their American-appearing counterparts. The Immigration and Nationality Act prohibits employers from discriminating against U.S. citizens and all authorized laborers merely because they appear or talk "foreign." Agripac, an Oregon-based regimen processing plant, agreed to settle the allegations for $45,000 in back pay and civil penalties, arising from allegations that the company:
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