What Wage and Hour Trends Mean- Wage and hour cases are complex and can be categorized into a number of different alleged violation types that can easily overlap. Claims categories include more than just misclassification of exempt and non-exempt employees, making it harder for employers to identify latent wage and hour violations
- Small and midsize companies have seen the most significant increase
- Claims filed under the FLSA do not require a company to have 15 employees — small companies are at risk
- Business categories experiencing the most claims are service and low-wage industries
- Plaintiffs’ attorneys are actively pursuing wage and hour cases — lawyers receive pay for time expended on these types of cases and not a percentage of final awards. This provides a significant opportunity for lawyers to increase income and motivates them to seek out potential claimants
- The intent of the employer is irrelevant. Employers who unknowingly make mistakes cannot defend against pay violations. If a company’s records reveal a lack of payment, they must back pay employees
- Average defense costs can be as much as $100,000 or more
Monitor Offers Solutions- Costs of defense for claims alleging violation(s) of the FLSA
- Efficient handling of wage and hour claims
- National network of attorneys with expertise in wage and hour offering lower
pre-negotiated rates for insureds
EPL Risks: Wage and Hour Lawsuits and Illegal Alien Investigations
An overview on how wage and hour and illegal alien investigations can
jeopardize the profitability of a business.
Wage and Hour Litigation Links
Wage and Hour Law Update Blog
This Jackson Lewis blog features the most up-to-date information on wage and hour developments in Washington, D.C. and around the country.
Read Blog
New Regulations Under the FLSA to take Effect May 5, 2011
The Department of Labor's latest revision of overtime regulations under the FLSA means that employers need to re-evaluate their payroll practices. Under the new revisions, fluctuating workweek employees should not receive any bonuses or non-overtime
premium payments.
Also, employers who rely on the FLSA’s tip credit provision should review their procedures for informing tipped employees about their use of the tip credit.
> Federal Register
> Read Seyfarth Shaw's Alert
Recent FLSA Case Offers Insight Into Lesser-Known Exemption for Hospitality Employers
While administrative, executive and professional are the most widely-known exemptions under the FLSA, the lesser-known retail sales exemption was recently highlighted in favor of the employer in Nascembeni v. Quayside. Although the ruling in this case would be seen as favorable by employers in the hospitality industry, employers still need to ensure that they are properly characterizing their employees under the FLSA.
Related Links
> Employees Fight Over Mandatory Service Charges
> Retail Sales Exemption to Federal Wage Law
> Federal Court Reiterates That Banquets Servers Can Satisfy Section 7(i) Exemption
New Mandate for Miami-Dade County — Wage Theft Includes an Employer's Violation of the FLSA
Miami-Dade County has enacted a wage theft Ordinance which, among other requirements, mandates when employees must be paid and provides for significant damages if an employer fails to pay an employee wages owed...
Read Jackson Lewis Article
Wage and Hour Suits Continue To Explode
A report shows a 44-percent hike in wage-and-hour lawsuits in 2009. With more employees out of work and uncertain of their futures, that number may increase, experts say. HR needs to audit company practices -- especially in light of some of the changing job responsibilities brought on by the recession -- to pre-empt a class-action lawsuit against their organizations.
Read Human Resources Executive Online Article
Despite Backlash, Florida To Remain FLSA Hotbed
In recent years, FLSA litigation has soared across the U.S..."I know I've scratched my head, and a lot of people have said, 'What is it about Florida that there's just this high level of filing?'"...
Read entire Law 360 article about wage and hour litigation in Florida
Recent Trends in Wage and Hour Cases
A wage and hour case is the general description for cases concerning the alleged non-payment of full and timely wages. This working paper presents trends in wage and hour cases and explains how the use of statistics can help shed light on these issues.
Read Working Paper "Class Certification in Wage and Hour Litigation: What Can We Learn from Statistics?"
New York — Wage Theft Prevention Act Signed into Law on December 13, 2010
The Wage Theft Prevention Act increases obligations for employers at the time they hire New York employees as well as additional penalties upon those employers who are charges with violating the State's wage and hour laws...
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