The Battle Wages On: Study Confirms Increase In Dollars To Settle Wage-Hour Claims

This year’s “Trends in Wage and Hour Settlements” report, by the National Economic Research Associates, has identified 467 million reasons—75 million more than in 2011—for employers to continue to take proactive measures to avoid litigation under state and federal wage-hour laws.  The report quantifies what most of our readers already know:  wage and hour cases continue to be a source of potential liability for employers.

The study, which draws in part upon data from our firm’s annual class action report (which you can freely access by registering here), analyzed 446 settlements in wage and hour cases since 2007, including 102 from last year.  According to the study, employers spent over $467 million to settle such lawsuits in 2012.  The average settlement was $4.8 million, up from $4.6 million in 2011.  Also on the rise is average settlement value per plaintiff, which increased from $5,163 to $6,373. 

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