As a wise person once said, "It's
déjà vu all over again." Anyone who
thought wage-and-hour lawsuits would be a short-lived lawsuit
du jour of the plaintiffs' bar have been proven wrong.
Claimants filed more than
8,900 FLSA cases in federal court last year, a 30 percent increase
from 2011. In light of the continued trend and recent
legislation that has the potential to expand liability to
individuals acting on an employer's behalf, employers should
take a hard look at the insurance assets available to protect
against these potential liabilities.
California's new statute, the Fair Day's Pay Act, has
the potential to implicate a "person acting on behalf of an
employer" to liability for the company's allegedly
improper wage-and-hour practices.
Labor Code § 558.1 (eff. Jan. 1, 2016). New York amended
its existing
Business Corporation Law § 630, effective January 19,
2016, to extend potential liability for unpaid wages to the top 10
shareholders of privately held
