Avoiding Lawsuits under the Federal Labor Standards Act (FLSA): Overtime Pay & Rise of Class Action Lawsuits

This update applies to businesses with a large number of hourly employees who receive bonuses.

There has been a rise nationally and specifically in Wisconsin in plaintiff’s attorneys filing class action suits against employers based on specific nuanced areas of federal law.  One area of concern is violations under the FLSA.  The incentive in these suits is that the plaintiff’s law firm can recover attorneys fees as part of the suit from the employer.  The attorney’s fees often overshadow the damage to employees from underlying violations.  For example, a class action suit could arise from underpaying overtime by $50-$100 per employee, but the plaintiff’s legal fees may be tens of thousands of dollars.

Accordingly, it is important to review your employment practices, specifically in the areas of bonuses and overtime pay, to avoid costly litigation. To find out more, read more in this update on the Federal Labor Standards Act.

Disclaimer: The information contained in this post is for general informational purposes only and is not legal advice. Due to the rapidly changing nature of law, Schloemer Law Firm makes no warranty or guarantee concerning the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it applies to your unique circumstances before deciding to take—or refrain from taking—any action.  If you need legal guidance, please contact us at 262-334-3471 or [email protected].