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A recent article in TLNT from Amy Bailey at Coopers Lybrand, FLSA Lawsuits are Increasing – Here’s What You Should Do, documents the staggering increase in FLSA lawsuits – 465% since 1995.  Expect that number to increase significantly with the new OT rules set to begin December 1st.

What are you, as a small business owner, to do to avoid being sued?  Says Amy, “preparing for the worst case scenario, rather than hoping it won’t happen to you, is critical to mitigating damage, limiting expenses, and protecting your company and employees.”

There are a few things you need to know.  We recommend you read Amy’s article, but here is a brief summary …

  • Understand that plaintiffs’ lawyers are actively soliciting your employees.
  • Know that wage and hours cases are notoriously difficult to settle. 
  • Don’t assume you’re right.
  • Understand that speed is of the essence. 
  • Keep it classy. 
  • Take corrective action with legal counsel. 

The most important step is preparation—either by preventing a lawsuit from happening in the first place or knowing what to expect, and how to proceed, if a lawsuit does find you.  Reading this article is an important first step.

But you can also simplify the process of protecting your company against FLSA compliance issues, as well as many other compliance issues, by contacting us at eESI.

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