Wage and Hour Litigation Trends and Implications

This document is a technical report detailing the current landscape of wage and hour litigation under the Fair Labor Standards Act (FLSA) and related state laws. It outlines the significant increase in federal filings, with approximately 1,673 FLSA collective actions reported nationwide in 2024. The report notes that courts favored conditional certification in nearly 80% of cases, indicating a trend towards easier maintenance of such lawsuits. The document also discusses the implications for employers, highlighting the challenges posed by remote and hybrid work environments, which blur the lines of employee classification and tracking of hours worked. Furthermore, it addresses the rising costs associated with defense and indemnity in wage and hour claims, emphasizing the need for employers to implement accurate timekeeping systems and stay informed about evolving wage laws. The report concludes with a discussion on the availability of wage and hour liability insurance and notable settlements from various industries.