A recent survey demonstrates that wage and hour litigations are on the rise. Between April 1, 2012 and March 31, 2013, a total of 7,764 wage and hour-related lawsuits were filed against employers, about a 10 percent jump from the previous year. This increase is part of what looks to be a decade-long trend, according to an infographic from Seyfarth Shaw.
Data from the ADP Institute indicates that wage and hour lawsuits accounted for 90 percent of all state and federal employment cases. These lawsuits are typically filed on behalf of salaried workers who believe they are owed overtime pay and hourly workers who allege they have not been compensated for all hours worked.
Of the top ten reported wage and hour settlements, the average amount awarded to plaintiffs was $34 million. No matter what business you are in, litigations are a cause for concern.
With such dramatic numbers to contend with, businesses should be vigilant with regard to tracking employee time. Using electronic time and attendance software in combination with strict training programs can help reduce issues that arise from a program automatically deducting for break periods and other common problems. Having employees sign off on their hours can also help to prevent lawsuits.
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