Wage and hour litigation outpacing all other workplace class actions!

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."

Wage and hour lawsuits have become a major concern for employers, with the Dept. of Labor stating the 40,000 wage-and- hour complaints during fiscal 2010 were up about 15% from the previous year's total.

The complexity of federal and state laws, the relative ease of winning class action certification and workers laid off as a result of the weak economy have led to more litigation in recent years, observers say.

Among reasons for the lawsuits' growth is establishing a class action under the Fair Labor Standards Act is relatively easy under the federal rules of civil procedures, said Paul J. Siegel, a partner with Jackson Lewis L.L.P. in Melville, N.Y.

Many claims fall into two major categories: misclassification of workers as exempt, and unpaid overtime, observers say.

However, employers can minimize the chances of litigation by taking steps that include periodic audits to determine whether employees are being properly classified, as well as careful record-keeping.

When employers are sued, experts say settling the case may be the wiser course.
Employers should keep good records, periodically audit their employee classification and record-keeping, and practice diligent supervisor training to avoid wage-and-hour lawsuits, observers say.
When employees are working off the clock, employers should be aware that federal and state laws may differ when it come to meal or rest breaks and stay up to date on regulations, Mr. Maatman said.
Companies also should have a complaint or grievance procedure for workers who feel they are not being paid appropriately, he said.

Reprinted from Business Insurance.