ARTICLE
26 November 2019

Expense Reimbursement Claims Are Covered By Employment Practices Insurance

PR
Proskauer Rose LLP

Contributor

The world’s leading organizations and global players choose Proskauer to represent them when they need it the most. Our top tier team of star trial attorneys, acclaimed transactional lawyers and exceptionally talented partners and associates have earned a reputation for the relentless pursuit of perfection and a dauntless pursuit of success.
Lloyds of London provided the employer in this case with an employment practices liability insurance ("EPLI") policy, which contained an exclusion relating to "wage and hour or overtime law(s)."
United States Employment and HR

Southern Cal. Pizza Co. v. Certain Underwriters at Lloyd's, London, 40 Cal. App. 5th 140 (2019)

Lloyds of London provided the employer in this case with an employment practices liability insurance ("EPLI") policy, which contained an exclusion relating to "wage and hour or overtime law(s)." In this insurance coverage dispute, the employer alleged the policy exclusion is narrower in scope than Lloyd's contended. The trial court sustained the insurer's demurrer to the complaint, but the Court of Appeal reversed, holding that "we conclude many of the disputed underlying lawsuit claims are potentially subject to coverage." Specifically, the Court held that claims in the underlying lawsuit involving failure to reimburse delivery drivers for mileage expenses (Cal. Lab. Code §§ 2800 and 2802) fall outside the EPLI policy's wage-and-hour exclusion, as do the derivative claims for violation of Cal. Bus. & Prof. Code § 17200 and the PAGA.

Expense Reimbursement Claims Are Covered By Employment Practices Insurance

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More