Summer hiring surges are bringing thousands of first-time workers into US workplaces, but employment practices liability (EPL) experts say the biggest risks often emerge not from day-to-day work itself, but from what happens around it.
Interns' and seasonal employees' unfamiliarity with workplace norms, combined with inadequate training and supervision, can create exposures ranging from harassment allegations to retaliation and wage-and-hour disputes. According to the latest data from the US Equal Employment Opportunity Commission, the agency received more than 88,000 new discrimination charges in fiscal year 2024, a 9% increase from the previous year, underscoring the continued volume of workplace disputes facing employers.
At least one insurance specialist has urged organizations bringing on temporary staff, interns, and recent graduates this summer, onboarding and documentation may be among the most effective defenses against future claims.
Chris Williams (pictured), employment practices liability product manager at Travelers, said the challenge for many first-time workers is that they are still learning what constitutes appropriate workplace conduct.
"Those individuals who are new to the workforce, like interns, may not have a full grasp of what behavior is acceptable in the workplace,” he told Insurance Business.
Many new workers learn workplace expectations by observing colleagues rather than through formal instruction alone, he said. That can become problematic when employees bring social norms from college or other environments into professional settings. Importantly, legal protections apply regardless of tenure or experience level.
"Employment law protections for discrimination, harassment, and retaliation apply to all employees," he said. "So if you're paying an intern, they're an employee, they qualify as such, and they are therefore protected under the law."
When claims do arise, Williams said they frequently involve social activities outside normal working hours. Work-sponsored social events can become particularly problematic when managers attempt to build rapport with younger employees in informal settings.
"Sometimes we'll see claims where management tries to be hip and cool and hang out with the interns, and they engage in behaviors they shouldn't, especially if those situations involve alcohol and drinking too much at a work function," Williams said.
Alcohol-related events can also introduce additional concerns when some interns or seasonal workers are below the legal drinking age. Retaliation claims can emerge when interns raise concerns about workplace practices and later believe they were disadvantaged as a result, Williams warned.
Wage-and-hour compliance presents another area of risk. Interns who qualify as employees must receive overtime pay when required under federal law. "If employers have interns working more than 40 hours, they need to ensure they're compensating them for those hours, or alternatively make sure they're not working overtime," said Williams.
Williams described onboarding as "essential" to reducing EPL exposures. Beyond helping prevent misconduct, training can also strengthen an employer's defense if litigation occurs later.
"In the event there is a claim for sexual harassment or discrimination, the employer can point to the training and say, 'We provided the employee with training. We did what we were supposed to do,'" he said.
However, he warned that training should extend beyond new hires. Common mistakes among employers include exempting certain employees from training requirements, failing to document participation, and offering programs that are too brief to demonstrate meaningful engagement.
Williams also noted that employers must remain mindful of state-specific requirements. States including California and Connecticut mandate sexual harassment training under certain circumstances.
Thorough recordkeeping is another strong defense, though it can become increasingly valuable because EPL claims often unfold over several years. According to the EEOC, discrimination charges frequently proceed through lengthy administrative processes before litigation occurs. By the time a case reaches court, managers and employees involved in the original events may no longer be with the organization.
However, Williams stressed the importance of being comprehensive about documentation, which can also serve as evidence that an employer responded appropriately to complaints.
"If the employer says, 'We addressed (this complaint) satisfactorily, and this is what we did,' that needs to be documented," he said. "Consistency and documentation are imperative in these situations."
