EPLI may cover many wage/hour suits. (Policyholder Lawyers' Perspective).(employee practices liability insurance)

National Underwriter Property & Casualty-Risk & Benefits Management, February, 2003 by Pasich, Kirk A.

During the last two years, a substantial number of wage/hour class action lawsuits have been filed by employees against their employers seeking to recover damages and other relief for the nonpayment of overtime wages. While some employers assume that their insurance policies may not provide coverage for these wage/hour lawsuits, that assumption often is incorrect.

Plaintiffs in the wage/hour lawsuits typically allege that their employers misclassified them as "exempt" employees, thereby avoiding any duty to pay overtime compensation. The suits often involve managers who challenge their exempt status based on the work they perform that they contend is not managerial. Rather than suing under the Federal Labor Standards Act, many of these plaintiffs are...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.