How to reduce wage-and-hour lawsuit risks (and defend yourself if sued) — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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How to reduce wage-and-hour lawsuit risks (and defend yourself if sued)

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in Human Resources,Overtime Labor Laws

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)

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