New Study: Wage & Hour Class Actions #1
A new study by the law firm of Seyfarth Shaw confirms what we’ve been seeing in the headlines all year: wage and hour class actions are booming.
The firm’s 4th Annual Workplace Class Action Litigation Report identifies several major trends in the world of employment lawsuits:
#1: Wage and Hour Suits Are King. According to the report, the volume of wage and hour lawsuits continues to rise “exponentially.” In 2007, Fair Labor Standards Act class actions produced more rulings than even employment discrimination and ERISA benefits cases.
#2: Plaintiffs Prefer State Court. Most of the litigation growth was at the state court level, particularly in California, Florida, Illinois, New Jersey, New York, Pennsylvania and Texas. In short, Plaintiffs’ attorneys tend to favor the perceived “home court” advantage offered by state courts.
#3: $$$ Damages Continue to Rise. Damages recovered in employment lawsuits continued to increase in 2007. Several nationwide class actions resulted in massive settlements as plaintiffs’ lawyers continue to find new and creative legal theories to fuel large-scale litigation.
What Will 2008 Bring? More of the same. Each of the above trends is expected to continue in 2008.
The lesson? As Gerald Maatman, the report’s General Editor, noted: “identifying, addressing, and remediating class action vulnerabilities” should be at the top of every employer’s list of 2008 priorities.
In other words, imagine what the world’s toughest plaintiffs’ firm would sue you for and fix it before they get a chance.
