Study Finds Wage and Hour Lawsuits Outnumber All Other Employment Class Action Claims
September 18, 2010
Our Newport Beach employment lawyers have been interested in a recent study, published by the ethics and compliance training company (ELT) Inc., concluding that one-third of employers have dealt with a wage and hour claim over this past year.
According to the study, that surveyed over 1,800 senior legal and HR professionals, there are more class action wage and hour lawsuits than all other employment discrimination class action lawsuits combined.
The U.S. Department of Labor (DOL) reports that over 80% of American employers are violating state and federal wage and hour laws. This year, the Obama Administration increased the Labor Department's budget, which has led to more strict wage and hour law enforcement through increased investigations of employers across the country by DOL field investigators, who closely study individual employer pay practices involving overtime compensation, rest and meal breaks, and off-the-clock employment.
The study revealed that current class action wage and hour settlements are often large, averaging over $23 million at a federal level, and around $24 million in state levels.
The ELT reports that with this increase in wage and hour claims over the past several years, most employers are beginning to understand the enormity of the issue, and are starting to take action. A reported 54% of companies have already increased spending in 2010 to comply with wage and hour laws and regulations. The ELT also states that employers can work to prevent wage and hour claims by being proactive and by training their employees and work staff on how to better maintain company compliance to state and federal wage and hour regulations.
Wage and Hour Litigation Tops List of Employment Class Action Claims, Business Wire, August 25, 2010
Warning: 1 in 3 Companies Sued for Pay Practices, CFO News, September 9, 2010
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