Wage and Hour Litigation and Compliance

ADP Research Institute®

Trends in Wage and Hour Litigation Over Unpaid Work Time and the Precautions Employers Should Take

There is a rising tide of wage and hour litigation in the United States as the Department of Labor (DOL) more aggressively enforces wage and hour laws and more lawyers specialize in Fair Labor Standards Act (FLSA) cases. Of all state and federal court employment law class actions filed in the U.S., 90 percent are wage and hour claims, which often result in very large settlements. Many wage and hour claims involve unpaid work time, highlighting the importance of automated time and attendance and payroll systems in protecting employers against wage and hour litigation. This paper discusses trends in wage and hour litigation over unpaid work time and outlines steps that you, the employer, can take to minimize your exposure and risk.

 * A complete list of sources and citations can be found in the full report.

90% of all state and federal class or collective actions are wage and hour claims. Source: Littler Mendelson review of court data.

About This Report: This report was commissioned by ADP and authored by Laurent Badoux, Esq., of Littler Mendelson, P.C. Littler Mendelson is the largest U.S.-based law firm exclusively devoted to representing management in every aspect of labor and employment law. The expert opinions and best practice recommendations in this report are those of the author alone.

Keywords: Compliance, HR Management, Payroll, Time and Attendance

Business Types: Research for Small Organizations, Research for Midsized Organizations, Research for Large Organizations

Roles: Research for Finance Professionals, Research for Human Resources Professionals

Trends in Wage and Hour Litigation Over Unpaid Work Time and the Precautions Employers Should Take

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