Now outranking discrimination lawsuits, measured by both number of filings and size of settlements, employment practices lawsuits have become an unforeseen calamity for companies across all industry sectors, the firm said.
Typically, wage-and-hour suits involve allegations that employers have failed to pay wages for time worked, or failed to pay at rates required by law.
According to Advisen, the Department of Labor (DOL) estimates that 80 percent of employers are not in compliance with applicable wage-and-hour laws.
(From a Property-Casualty.com article)Â Insurers have been slow to respond with coverage for wage-and-hour lawsuits that have been an escalating threat to companies of all sizes over the past decade, Advisen Ltd. said in a new study.
The 21-page report, “The Threat of Wage-and-Hour Lawsuits,†examines the drivers of these suits and explores recent developments in wage-and-hour litigation. Additionally, it includes a survey of insurers that provide possible coverage.
Typically, wage-and-hour suits involve allegations that employers have failed to pay wages for time worked, or failed to pay at rates required by law.
According to Advisen, the Department of Labor (DOL) estimates that 80 percent of employers are not in compliance with applicable wage-and-hour laws.
Now outranking discrimination lawsuits, measured by both number of filings and size of settlements, employment practices lawsuits have become an unforeseen calamity for companies across all industry sectors, the firm said.
Alterations made to the Federal Labor Standards Act (FLSA) by the DOL in 2004 were originally intended to clarify definitions to make it easier for companies to comply. Instead, it brought focus to the issue and sparked awareness among the plaintiff’s bar, according to the report.
Advisen noted that the DOL and certain state labor departments have stepped up enforcement efforts in recent years, and the DOL has ramped up its Wage-and-Hour Division under the Obama administration.
