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Subscriber only, premium content. Friday, September 23

Wage-and-Hour Litigation: Strategies for Managing This Growing Risk

With wage-and-hour lawsuits a major and growing problem for employers, what can companies do to limit their exposure to such litigation and its related costs?

  1. Identify & Analyze

    Wage and hour litigation is a concern for many companies

  2. Evaluate & Implement

    Best practices to avoid claims, when and how to settle

  3. Monitor & Adjust

    Responding to wins and losses on the litigation front

According to an industry expert, wage-and-hour litigation is the "No. 1 exposure area in corporate America as far as the plaintiffs class action bar is concerned." ›› More

Wage and hour lawsuits have become a major concern for employers, with the Dept. of Labor stating the 4,000 wage-and- hour complaints during fiscal 2010 were up about 15% from the previous year's total. ›› More

Wage-and-hour litigation continued to outpace all other types of workplace class actions, says Seyfarth Shaw in its annual report ›› More

California joined eleven other states in agreeing to work with the Dept. of Labor in uncovering cases of employee misclassification of exempt employees ›› More

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Wage-and-hour suit focuses on sales reps

The litigation filed by plaintiff's law firm Sanford Wittels & Heisler L.L.P. in Lori Hoel et. al. vs. Leo charges LEO with misclassifying its sales representatives as salaried exempt employees.

Employers should keep good records, periodically audit their employee classification and record keeping, and diligently train their supervisors in order to avoid wage-an-hour lawsuits, observers say. ›› More

Most wage-and-hour litigation is eventually settled because of their potential for significant legal costs. Employers should evaluate what is at issue, and determine whether a claim is viable. ›› More

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DOL guidance on overtime pay

Dept. of Labor regulations say unless workers are exempt under the Fair Labor Standards Act, employees must be paid overtime pay of 1.5 times their regular pay rates if they work more than 40 hours in a week.

The 7th Circuit Court of Appeals has held that pharmaceutical firms can use the Fair Labor Standards Act's administrative exemption to avoid paying their sales representatives overtime ›› More

A California class action wage-and-hour lawsuit by bank employees who said they were misclassified as outside sales personnel is expected to have a dramatic impact on comparable litigation both in the state and nationally. ›› More

The California Supreme Court strikes down an appellate court ruling, finding that claims adjusters are not exempt from laws requiring employers to pay overtime wages. ›› More

A state appellate court held that a settlement favoring workers compensation adjusters suing American International Group Inc. claims units was fair, as it upheld a trial court's 2010 approval of the deal. ›› More

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FLSA exemption

The 7th Circuit says pharmaceutical sales representatives may fall under the Fair Labor Standards Act's administrative exemption.

Insurers win hour-and-wage decision

The California Supreme Court struck down a 2007 California appellate court finding that claims adjusters are not exempt from laws requiring employers to pay overtime wages.

The U.S. Supreme Court's Wal-Mart Ruling

Experts say the U.S. Supreme Court's 2011 ruling in Wal-Mart Stores Inc. vs. Betty Dukes et al. will make it easier for employers to battle class action law suits.

Decision on Bank Employees Focuses on Statistics

The Sam Duran et al. vs. U.S. Bank National Assn. ruling by a California appellate court criticizes statistical data provided by plaintiffs, stating it was “insufficient to establish that respondents' theory can be proved on a class…