Plaintiff's overtime lawyers love class warfare. A well-written overtime lawsuit always asks the court to create a class of your current and ex-employees to sue you as a group. Lawyers call that an overtime collective action. It's deadly—plaintiff's lawyers leverage the high potential liability to broker class-wide settlements with eye-popping dollars.
One way to curb the problem is to break up these classes before they form. A plaintiff's lawyer is less likely to aggressively pursue an single employee's overtime claim against you because the lawyer's up-side is much smaller. Employee arbitration programs may let you duke out an overtime dispute mano y mano.
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Labor & Employment Law Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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