Wage and hour disputes are among the most common employee issues and employers must limit their exposure to this kind of claim.
Wage and hour claims can be frustrating and costly, but employers can protect themselves and their businesses with the right kind of insurance.
A little background
A non-salaried or non-exempt employee may file a claim alleging a wage and hour dispute. The majority of such claims concern a lack of proper overtime pay. Any employee who earns less than $684 per week must receive payment for overtime hours. Class action lawsuits of this type cost businesses in terms of defense and settlement expenses.
Wage and hour claim examples
In addition to the lack of overtime pay, wage and hour claims can involve a lack of proper rest breaks, unpaid meals, time off instead of overtime pay or lack of payment for required meetings, seminars or company training events for which employees should receive compensation.
Wage and hour litigation may address damages to the plaintiff, court orders, settlements related to mediation, interest on payment and defense costs. Most wage and hour liability insurance covers such issues and costs. Commercial general liability (CGL) insurance is one such example, as is Employment Practices Liability Insurance (EPL). The employer is responsible for any expenses related to a lawsuit that the insurance policy does not cover. If necessary, disputes arising between an employer and an insurer, such as the breach of an insurance contract, may require resolution through a separate legal proceeding.