by Christopher J. Moran, Esq., Pepper Hamilton LLP, Philadelphia
During a recent 12-month period, more than 7,750 wage-and-hour lawsuits were filed in federal courts, an increase of almost 10% over the preceding 12 months. Pennsylvania once again ranked among the top 10 states for such new lawsuits.
Wage-and-hour lawsuits are attractive to plaintiffs—and, perhaps more important, their attorneys. When employees win these cases, they are typically entitled to recover their attorneys’ fees and court costs. Second, a single lawsuit may include claims on behalf of many employees or former employees. That means they can be worth staggeringly large damages awards. Plus, plaintiffs’ attorneys know it costs a fortune for employers to defend wage-and-hour lawsuits, particularly class actions.
For all those reasons, employers may be more inclined to settle these cases. A recent survey by National Economic Research Associates found that...(register to read more)