For a price comparatively nominal to the cost of litigation, employers can purchase an employment-practices liability insurance policy (EPLI). An EPLI policy provides protection for the employer from the economic and 
noneconomic losses resulting from employment-related claims, including but not limited to claims of wrongful termination, discrimination, harassment or retaliation.
 In addition to an employer’s risk-management portfolio for social media, an employer’s overall risk management should include an EPLI policy to protect them from the costly litigation associated with labor and employment.
Employers need to have a solid social-media policy in place. This policy should:
- Outline what constitutes inappropriate use of social media, from personal use during work hours to the type of content posted, including defamatory language about the company.
- Address the penalties for disclosure of trade secrets on public pages, in a language and context that can be understood clearly.
- Address disciplinary action and termination procedures for violation of social-media use in its various forms.
Many hiring professionals and employers’ first stop during the hiring process is social-media outlets to screen applicants. They turn to LinkedIn or Facebook to learn more about an applicant’s education, their friends or even their social behavior.
Sometimes, a candidate is rejected based on content found on the applicant’s social-media pages, which could include inappropriate photos or comments, references to alcohol and substance abuse, discriminatory comments, slanderous statements and/or the sharing of confidential information regarding their previous employer, proof of poor communication skills and exaggeration of their qualifications.
While the above reasons are legitimate cause for concern, and employers advantageously have social media at their disposal to prevent negligent hiring, a business can be at risk for discrimination if accessing social-media sites that contain protected class information not privileged in the normal course of the hiring process.
To mitigate this risk, employers should use outside third parties in their hiring process, including background-verification companies and/or recruiters who document content acquired on social-media sites in the candidate-selection process.
For more:Â http://www.propertycasualty360.com/2011/12/01/managing-social-media-risks-a-critical-task-for-20?t=workers-compensation
   “…Court precedent found in 2010 with Robbins v. Marriott Hotel Services establishes that hotels may have to take extra steps to warn guests about “an open and obvious danger.”
