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The Growth in Wage-and-Hour Claims

By Andrew M. Slobodien and Stacey L. Smiricky
April 27, 2009

Much of the recent talk in the mainstream press has been about the Employee Free Choice Act, which would modify union organizing rules, and the Lily Ledbetter Fair Pay Act and the Paycheck Fairness Act, which target gender discrimination laws. However, employers big and small are aware of another recent trend in employment law, and one that has had a far bigger effect than any of these laws are likely to have. This is the Depression-era Fair Labor Standards Act, passed back in 1938.

Most employers know the FLSA as the federal law that requires the payment of minimum wages and overtime to certain workers. This is true. However, the exact requirements of this law are complex, and, hence, the source of the increase in litigation. The number and dollar value of FLSA claims and settlements have jumped enormously in recent years ' it has been reported that FLSA claims have increased over 50% just since 2006.

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