Employment practices liability audit An employment audit liability audit is an organized analysis of a company’s recruiting and hiring practices. It is typically self-administered, in compliance with an employment practices liability insurance policy, and conducted with the intention of uncovering any potential violations of employment laws. For many companies, regularly auditing employment practices is an effective way to mitigate problematic behaviors and biases that may otherwise pose a risk. An audit, for example, may reveal instances of discriminatory hiring, wrongful terminations, retaliation or any other actions which could provoke legal action. In discovering these liabilities, however, an employer can make efforts to rectify them before an employee takes legal action.
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