Wage and Hour Lawsuits Hit Record High

By: Bob Shea

The number of wage and hour lawsuits filed in federal court hit a record high for the twelve month period ending March 31, 2012. The number of actions filed each year has more than doubled in the past ten years. The majority of these lawsuits involve claims of employee misclassification, including claims of employees being classified as independent contractors and of non-exempt employees being classified as exempt (and not receiving overtime pay). Many lawsuits also involve claims of employees not being compensated for work performed outside regular work hours. Over the past decade, many lawyers representing employees have changed the focus of their practice from handling discrimination claims to pursuing wage-hour claims because of the higher success rate and class action potential. For employers, this means they should consider inceasing compliance efforts.

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