Given Proliferating Wage & Hour Claims, Specialized Insurance an Important Consideration for Employers


Given a dramatic increase in both the number of wage and hour lawsuits and the average cost to employers to resolve one — $4.5 million — a little prevention could be worth at least a pound of cure in this area, Kami Quinn and Jason Rubinstein say in this BNA Insights article. They note that filings of collective wage and hour claims in federal court have more than tripled since 2000.

While the first line of defense is for businesses to review their employment practices, an employer must also consider how its current insurance portfolio would respond to such a claim and whether that likely response can be improved in a cost-effective manner, the attorneys say. The coverage provided by insurance policies for wage and hour class actions can be an extremely valuable corporate asset—even when they provide coverage only for the associated defense costs, Quinn and Rubinstein say.

Originally published in Daily Labor Report on January 28, 2014.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

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.

© Gilbert LLP | Attorney Advertising

Written by:


Gilbert LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.