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Newest lawsuit threat: Wage-and-hour claims

Tim Gould
by Tim Gould
September 8, 2010
1 minute read
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One in three companies has been hit with a wage-and-hour claim in the past year. Could you be next?
The scary statistic comes courtesy of a recent study conducted by corporate compliance training firm ELT, Inc.
More disturbing results: Wage and hour class action lawsuits now outnumber all other discrimination suits combined, the study said.
Fortunately, it appears the severity of this legal trend isn’t lost on employers —  54% of study respondents have increased spending on wage and hour compliance this year.
Feds tightening the screws

You’ve likely heard that President Obama has increased the Department of Labor’s enforcement budget.
And if you’re wondering where that extra enforcement muscle might be going, consider this: The DOL estimates that more than 80% of companies are out of compliance with federal and state wage and hour laws.
Seems like a good time to make sure your exempt/non-exempt employee classifications are airtight.
And if you use independent contractors, better review their contracts to ensure the feds won’t claim they should be classified as employees.

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