Stemming the Onslaught of Wage & Hour Actions: Understanding the Legal Environment and the Use of Arbitration Agreements With Class Action Waivers to Limit Liability

More than 8,900 Fair Labor Standards Act (FLSA) lawsuits were filed in the federal courts last year. That’s an 11% increase from 2014. The number of FLSA actions filed in federal courts has increased approximately 450% in the past 15 years. Almost all are filed as collective actions and some also have state class claims under Rule 23.

This course, presented by Gregory V. Mersol and John B. Lewis of Baker Hostetler, LLP covers the current wage and hour enforcement environment. This includes white-collar exemptions, the duties test, problems with independent contractors, the DOL’s Guidance on the joint employer standard, problems resulting from the virtual workplace and “off-the-clock work." The presentation then turns to FLSA collective action strategy and ways to favorably resolve such actions. Finally, Mr. Mersol and Mr. Lewis consider the use of arbitration agreements with class and collective action waivers as a means to manage future wage and hour claims.

This segment not only analyzes the requirements of the FAA and state contract law but also challenges to waivers coming from the National Labor Relations Board and from state statutes.

Learning Objectives:

I.     Understand the current wage and hour enforcement environment

II.    Grasp current wage and hour pitfalls, including exemptions, independent contractor misclassification, joint employer liability and problems of the virtual workplace

III.   Consider the potential impact of proposed Department of Labor rulemaking focusing on increasing the salary and compensation levels needed for employees to be exempt

IV.   Comprehend the basic principles of the Federal Arbitration Act and related U.S. Supreme Court authority

V.    Analyze the federal and state requirements necessary for an enforceable class, collective and representative action waiver in an arbitration agreement