Sometimes the defense, almost never the wages. Some carriers exclude wage and hour claims outright. Others add an endorsement with a sublimit that pays defense costs only, which stops once that smaller amount is spent. What no version of it pays is the underlying wages. Money the employer was already legally obligated to pay is treated as restitution rather than damages, and California public policy does not permit that cost to be shifted to an insurer. Unreimbursed business expenses under Labor Code 2802 have been held to sit outside such an exclusion, so the specific allegations matter. We can read the endorsement on your policy with you.
Related FAQs
Yes, certain claims can come from applicants. EPLI may respond depending on the allegation.
Good practices reduce risk but do not prevent claims from being filed. Defense alone can be costly, which is why many careful employers carry it.
No. Workers’ comp covers workplace injuries. EPLI covers employment practices claims like discrimination, harassment, and wrongful termination.
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