Here’s the bad news, club owners — the next claim you experience may very likely come from your own employee. Now for the really bad news — your workers compensation and liability insurance won’t protect you.
The new hot issue for attorneys this year is “employment” related law. If you have read any of my previous articles, you already know that I am not a big fan of the Trial Lawyers Association. Litigation in this country is running rampant and too many people have adopted the battle cry, “It’s not my fault”. Whether it’s a member who falls on a treadmill, or an aerobics instructor who has been fired because of frequent tardiness, club owners are forced to deal with the backlash of individuals who refuse to admit accountability.
Your liability insurance policy is designed to protect you from a member’s lawsuit, but club owners are wide open to litigation from their employees and independent contractors. If you don’t think that it could ever happen to you, think again. All it takes is just one disgruntled employee to ruin your day or worse yet, your business.
Ready for some good news? There are two steps that you can take to protect your club. The first and most important step is to develop, update, or purchase an Employee Manual. I HIGHLY recommend that you purchase one through the NFBA (National Fitness Business Alliance.) An Employee Manual details what is expected of your managers and employees and will also provide you with anti discrimination and anti sexual harassment policies.
Once you have an employee manual that establishes good boundaries with your staff, you should consider purchasing Employment Practices Liability Insurance (EPLI). EPLI is a separate distinct policy that is designed to protect the club owner from employee litigation associated with discrimination, sexual harassment, and wrongful termination.
Health club owners need to take employment practices very seriously. Business is tough enough without dealing with the EEOC (U.S. Equal Employment Opportunity Commission) and your ex-employee’s attorney. You can avoid a lot of headaches if you and your management team treat all employees the same and practice zero tolerance regarding any form of harassment or discrimination. Here’s a bonus tip — don’t date your staff!
