Labor Employment Law Blog

The Second Circuit's ruling in Westrec Marina Management v. Arrowood Indemnity Co. is a warning to employers to report potential claims to their insurance carrier as soon as possible or face denial of coverage.  In Westrec, an employee filed a charge of discrimination against Westrec with the California Department of Fair Employment and Housing (DFEH) and requested an immediate right to sue letter.  Subsequently, her attorney sent a demand letter to Westrec asserting claims and seeking possible early settlement prior to filing a lawsuit.  At the time of the letter, Westrec failed to inform its insurer, Arrowood, of the claim.  The employee later filed a civil action, and when Westrec tendered the claim, Arrowood denied coverage.

Beginning September 2007, employers will be required to use the new EEO-1 Report (the "Report"), the government form for reporting of ethnic and racial information.  After a lengthy public comment period, the U.S. Equal Employment Opportunity Commission recently released the Report in its final version.  The changes in the Report are summarized below.  As with the old form, the Report must be filed by (1) employers with 100 or more employees, or (2) employers with federal government contracts of $50,000 or more and 50 or more employees.  A sample of the new Report is publicly available on the EEOC's website at http://www.eeoc.gov/eeo1/eeo1_2007_d.pdf.