How do Hiring Decisions Affect Non Profit Liability?

Since the recession, the unemployment rate for older employees has seen a dramatic increase. While it did drop back down to about 6% in 2010, it still seems that it is harder for older employees to find work. They are less likely to be laid off than their younger peers, but finding new employments seems to be more difficult, according to an article published by USNews.com.

Non Profit organizations may be hesitant to hire older employees for a number of reasons. First off, older employees generally will expect a higher wage given the experience they have in comparison to younger workers fresh out of college. For a non profit organization, this can be a difficult task, as they often do not have the disposable funds that their for-profit counterparts have.

Another reason non profit organizations may think twice about hiring an older employee is that their health benefits are likely to be more expensive, and they will have higher retirement expectations than younger workers. Not only that, but employers also frequently assume that if they hire an older employee, they will retire soon, and fail to give the employer a good return on the training investment.

While the above factors may be true in some cases, it does not mean that non profit organizations can base their hiring decision solely on age. This is a form of discrimination and can certainly lead to an Employment Practices Liability Claim against your client. Not only that, but there are actually benefits to hiring older employees as well; the non profit organization will get dedicated workers who are used to be punctual, likely detail-oriented, and individuals who take pride in a job well done.

At Charity First, we understand the risks your nonprofits face when it comes to making hiring and firing decisions. It’s vital that they be financially protected against any form of legal claim with Non-Profit Liability Insurance. To learn more about the products and services we offer, please contact us today at (800) 352-2761.