State Wage and Hour Class Actions on the Rise in 2008

Please read this excerpt from an article from the Society of Human Resource Management newsletter. It is widely believed that the audits and lawsuits will continue to rise in the coming year with very substantial payouts and legal fees.

By Joanne Deschenaux
SHRM’s Senior Legal Editor
1/21/09 4:46 PM

The last few years have seen an explosion in class action litigation involving workplace issues, and the present economic downturn is likely to fuel even more lawsuits, according to Seyfarth Shaw’s 2009 Annual Class Action Litigation Report.

The most significant growth in wage and hour litigation in 2008 centered at the state court level, Jerry Maatman, a Seyfarth Shaw attorney in Chicago who co-chairs the firm’s complex litigation group, told SHRM Online in a Jan. 15 interview. “Plaintiffs’ attorneys can stretch these cases, make them bigger, make them worth more in state court forums,” said Maatman, who edited the annual report.

This growth in state litigation has been concentrated in California, Florida, Illinois, Massachusetts, New Jersey, New York, Pennsylvania and Texas, a trend that is likely to continue in 2009, the report notes.

While some large employers have become more compliant, “what we are seeing daily is class actions being brought against restaurants, lawn care services, museums, small- and medium-sized employers that have been caught in the intricacies of state and federal law. The plaintiffs’ bar has not yet run out of litigation targets.”

IF you do not have compliant job descriptions for every position in your company and the proper “Hotline” channels established, please call Fern Powers at 215-563-5520. We are experts at developing compliant job descriptions, used by Wage and Hour audits, to determine if employees are correctly classified. An employment and labor attorney approve all of our well-written classifications.


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