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What You Need To Know About Wage Theft

Theft of employee wages by an employer is a real concern in many industries that staffing agencies service. This kind of theft can happen in any industry, whether it’s blue or white collar. Understanding this kind of theft and guarding your company against it can help to ensure that it doesn’t have a negative impact on your business.

What Is Wage Theft?

According to https://www.wwspi.com/, there are different forms of wage theft a staffing company may need to be aware of. One common example is the failure of an employer to keep up with changes in the minimum wage set by state and federal laws. Theft may also occur if an employer tells an employee that they are required to work off the clock. All employees are entitled to wages for all hours they work, including overtime. Yet another form of theft is when an employer simply doesn’t pay for hours that were worked. While this kind of theft may seem bold, it does happen.

The Takeaway

No matter what industry your agency specializes in, it is important to be aware of the various forms of wage theft. To minimize the potential financial impact of a claim, make sure your business has a strong insurance policy that covers possible pay discrepancies.

The Two Purposes of Workers Compensation Insurance

Despite all attempts to make workplaces safe, accidents can and do happen. In the event an employee is injured on the job or because of job-related conditions, workers compensation insurance serves two very important purposes.

Provides for Injured Employees

Employees benefit from this type of insurance in a few ways. It can pay for the medical expenses of an employee who was injured and make up for the wages an employee loses during the period of time they are unable to work. In worst case scenarios, it may also give death benefits to the dependents of a deceased employee.

Protects the Company

In the event that an injured employee files a lawsuit against the company they were working for, this type of insurance helps to make sure that the company will not have to be financially responsible for related fees. Because the insurance can cover court costs, lawyer fees and any damages awarded to the employee, the company can have peace of mind that it will not go bankrupt or have to pay the injured employee’s medical bills or lost wages out of its own pocket.

Workers compensation insurance is able to help both an injured employee as well as the company they work for, and is extremely important for every business to have. Regardless of the size of the business or whether or not this insurance is a legal state requirement, it can be a very wise investment.

Traits to Look For in a Business Insurance Provider

Shopping for business insurance in Totowa, New Jersey requires extensive research and effort. There are a lot of options available, but you need to find the one that will offer the right protection for your company. You may consult with an agent to get a better idea of your options, and there are several traits you should look for when you are researching providers.


When you’re talking to insurance providers, take note of the promises they make or any coverage they reference and ensure it matches that which is contained in the policy being discussed. Verbal agreements can be alluring, but they can also be misleading, so it’s important to find an agent who is honest and worthy of your trust.


Many providers of business insurance in Totowa, New Jersey offer policies with standard coverage and terms, but it’s best to look for policies that offer terms fitted to your specific business. Not all risks are the same, so you’ll be better served by coverage that’s tailored to the risks unique to your company.


Although you hope you never need to use your insurance, there may come a day when you file a claim. This is why it’s important to find a provider who is responsive and attentive. It will matter when you need it most.

Safeguard your Business from Crime

When you’re a business owner, you face a huge number of threats day in and day out, all of which have the ability to disrupt your company’s cash flow and the way you do business. One of the greatest threats to any business is crime. In fact, it’s estimated by the Association of Certified Fraud Examiners that crime is responsible for an amazing 6 percent loss of funds for companies over a single year in the wake of employee-related crime alone. Fortunately, owners may invest in commercial crime insurance, which covers the business in question from a wide number of dishonest threats, including:

• Employee dishonesty
• Robbery
• Forgery
• Embezzlement
• Counterfeiting
• Wire transfer fraud

These are all serious crimes which can take a huge chunk out of your business. Working with an insurance representative to find the perfect policy for the threats which your business faces on a daily basis is a must if you’re looking to protect yourself from these and other threats, and mitigate the damage which they inevitably lead to. While normal business insurance only covers a small portion of the cost of crime on your business, commercial crime insurance takes it to a new level by reimbursing you for the important funds lost when you’re faced with any of the above situations.

Reducing Risks at Your Small Business

Every business faces risks. Some are more prone to negative, unexpected events than others. While your small business should definitely have an insurance policy in place, preferably one obtained through Daniels Insurance, there are also various ways you can reduce risks on your own.

Be Conscious of Cash Flow

Many small businesses deal with a lot of cash. You want to calculate how much money you generally make and how much you would need should your cash flow become stagnant. A contingency plan should be drawn out where you lay out what expenses you could do without and the minimum number of employees you would need to keep the business running efficiently.

When Anything Changes, Get Insured

Small businesses are constantly in flux. Over time, you may want to open up a second location or move to a larger facility. Any time something changes, even if it seems small, you need to speak with your insurance agency to see if your policy needs to be updated. You do not want to be caught with the wrong kind of insurance or not enough for your current needs.

With the proper precautions, your small business should have no issues thriving. An agent from Daniels Insurance would be more than happy to meet with you to discuss your needs and find a policy that works ideally for you.

Get the Workers’ Compensation You Need Now

New Jersey workers’ compensation insurance can certainly be something of a hassle, particularly if you are a business owner. However, if you want your company to be completely legal and legitimate, the coverage for your employees is nevertheless a necessity. You have probably noticed that, over the last several years, actually finding a carrier that offers the kind of plan you want in your chosen industry has become no simple task. This is because, after the recession, many carriers are still looking for ways in which to become effective and profitable again.

Knowing the Landscape

In an effort to help get these coverage providers back on stable ground, the New Jersey State Department of Labor and Workforce Development and the state governor are working to get measures in place that would help to minimize common workers’ compensation problems such as fraud. However, while these proposed new laws are solid ideas, you likely won’t see the effects of them for some time.

Keep At It

As difficult as it might be for you to locate adequate New Jersey workers’ compensation at this time, it is crucial that you stick with it so that your business can move forward. Keep your eyes open for affordable prices with coverage that accounts for special circumstances in your business’s industry.



Staffing Agencies Have Greater Liability Risks

When you consider the working environment of a staffing agency, you can see that it encompasses many different offices because it has placed many temporary employees. This creates a much larger arena of risk for employment practices liability. You cannot directly observe the day-to-day operations of all the companies that use your employees or be sure of their corporate culture standards in daily office routines. Likewise, you don’t have the ability to directly supervise the people you hire. For these reasons, employment practices liability insurance is more important for staffing agencies than for most small companies.

Claims Are on the Rise

Liability lawsuits have been on the rise since the economic downturn of the late 2000s. Downsizing had a negative effect on interoffice relationships, with supervisors feeling more powerful and less accountable for their behavior toward subordinates, and rank and file employees unable to leave a job they did not like due to a weak job market. Temporary workers are more likely to feel they are not fully integrated into the office at which they are placed, and may experience more marginalization and stress.

Liability Insurance Coverage

The best way for staffing agencies to protect themselves from risk is to ensure that employees fully understand their legal rights; they should also know how to properly report and respond to incidents that may violate labor law. In addition, employment practices liability coverage is a must. According to recent federal government research, the average discrimination lawsuit costs more than $235,000, even if the plaintiff loses. To protect your staffing agency, consider a policy that covers common employment-related lawsuits and reasonable limits based on current statistics.

Companies of All Sizes Are a Potential Target of Workplace Lawsuits

Companies of all sizes and scopes are being targeted in lawsuits, and the cost of defense can be devastating for businesses of any size. Any company that hires employees is at risk, and while prevention is an admirable goal, it is simply not possible to control everything that is said and done within a workplace. Words and actions may be taken out of context or exaggerated by an employee to further substantiate their claim, and it is then incumbent upon the business to engage in the costly and lengthy legal process. Lawsuits may not always be avoided, but businesses are able to find protection through the use of employment practices liability insurance.


Insurance Can Protect Employers in the Event of a Lawsuit


There are a number of issues that may arise in the workplace that may result in an employee seeking legal action against the company, including:


  • Breach of contract
  • Disciplinary action
  • Failure to promote
  • Sexual harassment


There are a number of others as well, and each of these represents the possibility of a long and expensive legal battle. Employment practices liability insurance offers coverage in the event that an employee decides to file suit. The insurance coverage often includes the cost of legal defense and court costs, regardless of the outcome of the suit. This type of protection is incredibly important, because the true financial impact caused by a drawn-out legal battle is often difficult to quantify.


photo credit: Frodrig cc

Avoid Employment Practices Liability Claims through Awareness and Insurance

Employment practices liability
Employment practices liability

Governmental laws and legal clauses have continually progressed and changed over time to more accurately represent and honor the individual rights of each worker and applicant in the workplace. Not only can employers get in legal trouble for workplace discrimination, but some serious financial trouble may also accompany any legal claims made about discrimination or unfairness. Employment practices liability insurance is a great way to give yourself an added buffer in the case that such a claim is filed against your company or hiring staff. While insurance is a great way to help protect yourself and your company in the future, there are awareness measures that should also be considered.

While some types of discrimination are more commonly known and accepted as “unethical” in the workplace, there may be some forms of discrimination you are not aware of. The following forms of employee discrimination can lead to some serious problems in the workplace if they are used to measure employees or potential employees against one another:

  • Age
  • Disability
  • Equal Pay Scale
  • DNA
  • Nationality
  • Race
  • Skin Color
  • Religion
  • Gender
  • Sexual Orientation
  • Pregnancy
  • Sexual Harassment

Some of these forms of discrimination may be more obvious than others. While each case can vary, and the level of discriminatory judgment can be hard to determine, being aware of the ways in which discrimination is measured can help you be aware of the kinds of behavior that lead to Employment practices liability claims, and how to avoid these claims in the first place.