Wage and hour law suits brought under the Fair Labor Standards Act are through the roof. One recent study calculates a 518% increase since 1990. A record-setting 7,764 cases for a 12-month period was reported this past spring. People on the punch clock who feel they’ve been shortchanged are punching back as never before.
Now – at last – real insurance coverage is starting to become available. Fortune 500 companies and equivalents can get policies that will usually cover the full gamut: defense costs, plaintiff’s legal fees, back wages, punitive and other damages, fines and penalties. We expect availability to expand in the next two to three years. Maybe sooner. A lot of companies will be glad to see it.
For more detail (Why the rise? What are the areas of contention? What industries should be most concerned?), check out the lead story in this month’s issue of Willis’ monthly Insights newsletter and our FINEX Alert on the subject.