EPLI for Restaurants: Harassment & Wage Claim Coverage

EPLI for Florida Restaurants: Why Harassment and Wage Claims Are Your Biggest Hidden Risk

If you own a restaurant in Florida, you probably spend most of your insurance energy thinking about fire, customer slip-and-falls, and property damage. Those are real risks. But the risk that catches more restaurant owners off guard is the one that comes from inside your own business: a lawsuit from an employee.

Employment Practices Liability Insurance, known as EPLI, covers your restaurant when a current, former, or prospective employee sues you for harassment, discrimination, wrongful termination, retaliation, or perhaps even for wage and hour violations (w. Your general liability policy does not cover any of this. Neither does your workers' compensation policy.

Why Restaurants Are the #1 Industry for EPLI Claims

According to the EEOC, the restaurant and hospitality industry is the single largest source of sexual harassment claims in the United States. A Center for American Progress analysis of EEOC charge data from 2005 to 2015 found that 14.2% of all sexual harassment charges came from the restaurant and hospitality sector. No other single industry came close.

A 2021 national survey conducted by Social Science Research Solutions found that 71% of female restaurant workers have experienced harassment at least once during their career. The EEOC has stated publicly that it considers restaurant workers, particularly younger employees, to be among the most vulnerable populations for workplace harassment.

Why are the numbers so high? Several factors unique to restaurants converge:

• High turnover and young workforce.
  Restaurants employ more teenagers and young adults than almost any other industry. Younger workers are less likely to know their rights and less likely to report harassment.
• Close physical working conditions.
  Kitchens are tight, fast-paced, and high-stress. The power dynamic between managers and line staff in that environment creates exposure.
• Manager-to-employee harassment is the most common pattern.
  The EEOC's recent enforcement actions against restaurant companies have consistently involved managers harassing subordinates, often with the company failing to take corrective action after complaints.
• Tipped wage structures.
  When a server's income depends on shifts and section assignments controlled by a manager, the power imbalance intensifies. Employees who depend on tips are less likely to report harassment if they fear retaliation through scheduling.

The Three Most Common Restaurant EPLI Claims

1. Sexual Harassment

This is the highest-frequency claim. It includes unwanted physical contact, sexually explicit comments, requests for sexual favors, and hostile work environment claims. It applies to conduct between managers and employees, between coworkers, and between customers and employees. Third-party harassment (a customer harassing an employee) is covered under many EPLI policies if you have the right endorsement.

The Phelps Dunbar law firm, which represents hospitality clients, has noted that surveys show 90% of women and 70% of men working in restaurants have experienced some form of sexual harassment. Even if many of those incidents do not result in formal claims, the exposure is enormous.

2. Wrongful Termination

Firing an employee who recently filed a harassment complaint, reported a safety violation, or filed a workers' comp claim can trigger a retaliation lawsuit. Even in Florida, which is an at-will employment state, "at will" does not mean "for any reason." You cannot terminate someone for a reason that violates federal or state anti-discrimination law. EEOC data shows that retaliation is now the most frequently cited claim category, accounting for 47.8% of all charges filed in 2024.

3. Wage and Hour Violations

This is the one most restaurant owners miss. Florida's tipped minimum wage requires careful calculation. If a server's tips do not bring them to the standard minimum wage, the employer must make up the difference. Misclassifying employees as exempt from overtime, paying kitchen staff a flat daily rate instead of hourly, or failing to track break time can all generate wage and hour claims.  

What Does EPLI Cost for a Restaurant?

For most small to mid-size restaurants in Florida, EPLI costs between $1,500 and $3,000 per year for a $1 million policy limit. The exact premium depends on your number of employees, turnover rate, claims history, and whether you include the wage and hour endorsement.

EPLI can be added as an endorsement to your commercial package policy or BOP. For larger operations with 50+ employees, a standalone EPLI policy with higher limits may make more sense.

Compare that to the cost of defending a single harassment claim. According to the EEOC, the agency recovered $700 million for workers claiming discrimination in 2024 alone. Even if a claim against your restaurant has no merit, defense costs can run $50,000 to $100,000 or more before you ever get to trial.

Five Things Every Florida Restaurant Owner Should Do Now

• Get EPLI with the wage and hour endorsement.
  Do not assume your general liability covers employee claims. It does not. Ask your agent specifically about wage and hour coverage on an EPLI policy.
• Create a written employee handbook.
  Include anti-harassment and anti-discrimination policies, a complaint reporting procedure, and a statement that retaliation is prohibited. This is your first line of defense in any claim.
• Train managers annually.
  The EEOC has stressed that regular, documented anti-harassment training is expected. Training must cover recognition, reporting, and response. Keep signed attendance records.
• Document every termination.
  Before firing anyone, document the performance issues, the warnings given, and the business reason for the termination. "We just didn't need them anymore" is not a defensible reason if they recently filed a complaint.
• Audit your wage practices.
  Review tipped employee calculations, overtime tracking, and employee classifications at least annually. The cost of a payroll audit is a fraction of the cost of a wage and hour lawsuit.

Susan Augustyniak, CIC

Vice President, Augustyniak Insurance Group

Certified Insurance Counselor with 25+ years in the industry. Susan helps Florida restaurant owners build complete insurance programs that protect against the risks most owners overlook. This article was published in April 2026.

Related: Restaurant Insurance Jacksonville FL · Workers' Compensation Insurance · Business Insurance Jacksonville FL