I recently read about a large restaurant group that was forced to pay a significant settlement over hiring discrimination. It was a reminder of how much exposure employers face in the hiring process, especially in industries like hospitality, where high applicant volume and quick interviews are the norm.

The Interview Challenge

How are your new managers trained when it comes to hiring practices? In hospitality, a server interview may last only a few minutes, and leaders might run through 20–30 candidates in a single day.

The question is: during that time, are your managers truly representing your brand? Or are they rushing to get to the next candidate?

Every interaction is a reflection of your company. Your 30th interview of the day may feel routine, but for the candidate it’s a pivotal moment. And if your managers aren’t prepared—or are just as nervous as the applicant—they may inadvertently say something inappropriate or even unlawful.

Investing in Training

That’s why proper preparation is critical. Do your managers know what they can and cannot ask under employment law? Do they have tools to handle difficult questions while keeping the brand’s reputation intact? Training managers to interview effectively is about more than compliance—it’s about showcasing your culture and attracting top talent.

Protecting Your Brand: Four Risk Management Strategies

Employers should treat hiring as both a brand-building opportunity and a risk exposure point. Here are four ways to protect your business:

1. Risk Transfer (Insurance)

• EPLI Coverage: Maintain Employment Practices Liability Insurance covering applicants, employees, and third-party claims.
• Defense Costs: Ensure the policy covers legal defense expenses, which can be the biggest cost even if you prevail.
• Third-Party Coverage: Add endorsements that cover claims from applicants, vendors, or customers.

2. Risk Avoidance (Preventing exposure)

• Job Descriptions: Focus on skills and qualifications; avoid discriminatory language (e.g., “young and energetic”).
• Standardized Process: Use structured interviews with consistent questions.
• Background Checks: Ensure they comply with EEOC, FCRA, and local/state rules.

3. Risk Reduction (Minimizing claims risk)

• HR Training: Teach managers what they can and cannot ask (family, age, religion are off-limits).
• Written Policies: Maintain clear EEO and anti-discrimination policies.
• Applicant Tracking: Document applications, interview notes, and hiring decisions.
• Complaint Channels: Create a confidential way for applicants or employees to raise concerns.

4. Risk Retention (Planning for uncovered losses)

• Deductibles & Retentions: Be prepared to cover uncovered portions of claims.
• Legal Budgeting: Allocate funds for employment counsel to review policies, ads, and contracts.

Final Thoughts

Hiring is about more than filling open roles. Every interview represents your brand, your values, and your risk exposure. By training managers, establishing compliant practices, and securing the right coverage, hospitality employers can both protect their reputation and attract the right talent.

Interested in discussing the opportunities with respect to hiring and insurance coverage in your organization? Give us a call today.