Labor & Employment Chair Laurent Drogin published an article for the Association of Corporate Counsel’s (ACC) New York City fall newsletter titled, "Unsettling Developments in the Settlement of Wage & Hour Litigations.”

In the article, Laurent notes that in recent years, corporate counsel have been dealing with a massive increase in wage and hour issues, often in the form of a lawsuit, a Department of Labor investigation or an in-house compliance audit. He notes that the vast majority of lawsuits settle before trial, and from a company’s perspective, early resolution limits legal expenses, business distraction and, of course, liability.

Laurent cautions employers, "If ever there was a case to settle quickly, it is one that involves a wage and hour claim. This is due to the fact that in the wage and hour arena, current and even former employees are potential economic beneficiaries when a claim is raised by a single employee acting in a representative capacity for others 'similarly situated.’ In addition, employers are obligated to comply with federal, state and local laws, which are often confusing, impose differing requirements, wield harsh penalties for inadvertent errors, and are often not covered by insurance.”

Yet some courts are making these cases more difficult to settle. The article examines several tools that are being used today by some courts to reject settlements, why this is being done, and how it may actually stem the tide of wage and hour litigation.

Read the full article here.