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November 21, 2015
 
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Wage and Hour Suits 'No. 1 Headache' for Employers in 2015

The growing number of wage and hour lawsuits will continue to be a source of significant financial exposure for employers in 2015 and is "the No. 1 headache in corporate America today in terms of workplace issues," according to attorney Gerald Maatman Jr., author of a new litigation trends report.
If employers or general counsel are thinking of spending compliance dollars in 2015, Maatman told CorpCounsel.com Tuesday, "at the very top of the list has to be how to pay employees and make sure payroll systems are compliant with federal and state laws."

Maatman, cochairman of Seyfarth Shaw's class action defense group, authored the 844-page " Workplace Class Action Litigation Report" after he and colleagues analyzed 1,219 class action rulings by state and federal courts in 2014.

"The wave of wage and hour filings has yet to crest," the report states, warning that employers can expect to see novel litigation theories and more off-the-clock litigation brought by nonexempt employees. Such suits would attack rounding practices and seek pay for increased work-related use of mobile electronic devices while off duty.  

Increased litigation also is expected over independent contractor classification, joint employer liability, other off-the-clock work, unpaid overtime, missed or late meal and rest breaks, time shaving and improper tip pooling, according to the report.

The report also warns of increased activity by federal agencies. The U.S. Department of Labor and the U.S. Equal Employment Opportunity Commission "continued their aggressive litigation approaches" in 2014 despite some setbacks in federal courts. Their aggregate settlement recoveries, however, were significantly lower in 2014 than at any time since 2006, according to the report.

But Maatman suggested employers also pay special attention to the state level, where 2014 saw many changes in workplace laws, including changes to the minimum wage. "Legislative systems sneak up on employers," he said. "Keeping current with what the law requires needs someone assigned full time to make sure the employer is compliant."