FLSA Lawsuits Ticked Up in 2025, New Report Shows

Wage and hour litigation isn’t letting up, and the latest data puts a clear dollar figure on just how much FLSA lawsuits can cost employers.   

A new report from Seyfarth Shaw LLP tracks how federal FLSA lawsuits are being filed and resolved, offering a detailed look at where that risk is showing up.

FLSA Lawsuits Tick Higher 

Private federal FLSA filings increased year over year in 2025, rising to 5,702 FLSA lawsuits filed from 5,456 the prior year. 

FLSA filings stayed steady in 2025, with most months in a tight range – no sharp spikes or drops to speak of. October was the busiest month, with 533 filings, while January was the slowest, with 427. 

Of those cases, approximately 2,467 were filed as collective actions.

Meanwhile, the Department of Labor recovered more back wages in 2025 than in any year since 2019 – showing that agency enforcement pressure didn’t let up.

FLSA Settlements Show the Scale of Employer Risk

In 2025, FLSA collective action settlements totaled $418 million. Across 337 settled cases, that comes out to an average of about $1.2 million per case.

The settlement amounts vary significantly from case to case. The largest award was nearly $56 million, and more than 40 cases were resolved for more than $2 million.

Those figures reflect reported settlements in federal court based on publicly available data, the report noted. They don’t capture private resolutions, which means the total exposure tied to these cases could be higher than what’s disclosed.

FLSA Filing Hotspots

Where you’re located can indicate your risk for FLSA litigation.

In 2025, New York’s Eastern and Southern Districts led federal FLSA filings nationwide. Florida’s Southern and Middle Districts followed at a distance. Together, these four courts handled more than 35% of that year’s case volume.

That concentration carried over to the state level, where New York topped the list with 1,269 FLSA cases, followed by Florida at 870. Texas (419), Illinois (270), and Georgia (245) rounded out the top five.

HR Action Steps

Implement these steps to improve FLSA compliance and help reduce the risk of lawsuits:

• Assess location-specific risks. New York, Florida, Texas, Illinois and Georgia require extra focus on records and wage notices.
• Audit payroll processes. Verify overtime calculations, exemptions, and timekeeping accuracy – these are factors that trigger most wage and hour cases. 
• Train managers on an annual basis. Cover meal/rest breaks, time recording and auto-deduct errors that spark lawsuits.
• Strengthen internal reporting channels. Anonymous wage and hour hotlines can catch issues before DOL or class actions do.
• Update arbitration agreements. Include FLSA collectives to limit class-action exposure.