The number of FLSA collective actions had an uptick in 2009, along with alot of other employment litigation--predictable as the workforce encounters an economic crunch... This trend will undoubtedly continue in 2010.
In wage and hour class actions, recent cases of note include Foot Locker Retail Inc., Vermont state employees, H&R Block, AT&T call center workers, Cemex Inc. and First Residential Mortgage Network Inc.
Given the increase in FLSA collective action activity, all employers should be mindful of their classifications of employees and pay practices. As usual, an ounce of prevention is worth a pound of cure.
Employer should spend a little money up front to (1) confirm that job descriptions truly describe exempt executive, administrative, professional, computer professional or outside sales positions; (2) confirm that employees are actually doing what their job descriptions say they are supposed to do; and (3) ensure that exempt employees are being paid at least the minimum qualifying salary. In addition, to avoid other potential wage and hour litigation, employers should confirm that non-exempt employees are recording all hours worked and that individuals that are treated as independent contractors are not really employees.
As the economy eventually rebounds and temporary workers or independent contractors are hired to fill gaps before permanent positions are created, employers are particularly advised to handle these groups with care.
