Employment Claims Surge as Workplace Transformation Creates New Risk Exposures
- Aug 26, 2025
- 1 min read
August 27, 2025
Nearly seven in 10 organizations experienced employment-related claims in the past year while new workplace dynamics are creating unprecedented risk exposures, according to an analysis of the employment practices liability landscape by QBE Insurance.
The modern workplace transformation is driving a notable increase in employment-related legal challenges, QBE reported. Among the 200 legal and HR professionals surveyed from companies with annual revenues between $500 million and $5 billion, 69% reported their organizations faced claims alleging discrimination, harassment, retaliation or other employment issues over the past 12 months.
Looking ahead, the trajectory for employment-related claims appears concerning. More than four in 10 respondents anticipate claim frequency will rise over the next year, with 8% predicting a significant increase and 34% expecting a slight uptick.
The risk landscape is shifting toward both traditional and emerging exposure areas. Wage, hour and leave-related issues top the list of claims concerns over the next 12 months at 55%, tied with breach of employment contract claims.
However, newer risks are gaining prominence, with 51% identifying artificial intelligence use in HR functions as a likely source of future claims, matching the percentage concerned about workplace harassment and discrimination.
The rapid adoption of AI technology in human resources processes presents particular challenges, according to QBE. An overwhelming 84% of organizations currently use AI for tasks like resume screening and performance reviews, while another 11% plan implementation within the next year.
Despite this widespread adoption, 72% of respondents expressed concern about associated risks, including potential algorithmic bias that could trigger discrimination claims under federal civil rights legislation.
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