Wage and Hour Insurance Coverage: Mitigating Risk With EPL, D&O, and Specialty Wage and Hour Insurance Policies

Description

Wage and hour lawsuits are one of the most significant workplace liability risks for employers. Wage and hour claims continue to rise, and settling or losing a wage and hour action can be very costly. For example, in May 2023, in Su v. East Penn Manufacturing Co. Inc. (E.D. Pa. 2023), a federal jury returned a more than $22 million verdict against the employer for violating the FLSA, the largest award in the FLSA's history.

In light of increased claims and greater risk, more and more employers are focusing their attention on the adequacy of their insurance coverage for wage and hour claims. Traditionally, EPL policies have excluded coverage for wage and hour claims. D&O insurance may also exclude wage and hour claims from coverage. However, specialty wage and hour insurance products may provide added protection.

Employment counsel must understand how to strategically argue for coverage of wage and hour claims under EPL and D&O policies based on the allegations in the pleadings. Further, they must understand the benefits and challenges of specialty wage and hour policies and potential issues that can arise in structuring and negotiating coverage and exclusions.

Listen as our authoritative panel reviews the role of insurance in protecting against employers' increased wage and hour liability risks. The panel will explain how attorneys can strategically argue for coverage of wage and hour claims under EPL and D&O policies, the potential benefits and pitfalls associated with specialty wage and hour insurance, and factors to take into account when negotiating wage and hour coverage and exclusions under EPL, D&O, and specialty insurance products.