A new research tool released by the company TSheets shows Fair Labor Standards Act (FLSA) lawsuits have risen 456 percent since 1985. What’s more, the data set only includes successful lawsuits – not private prosecutions, cases settled out of court or cases where the employer won.
It's not surprising that the second-highest number of cases has been prosecuted in California, costing businesses in the state more than $160 million dollars in back wages and fines. The hospitality and foodservice industry is also the most likely industry to be targeted in FSLA lawsuits nationwide. In fact, since 1985, nearly 25 percent of all cases have targeted hotels and restaurants.
This issue isn’t likely to go away anytime soon. The CEO of TSheets recently wrote on The Huffington Post that President Obama’s proposed changes to current overtime laws represented the “most significant change to the economy in decades.”
Translation: more lawsuits.
As Congress continues to grapple with these new federal regulations, the National Restaurant Association is currently offering a survey to assess how these changes could impact business owners. For more information on current labor laws, check out our industry insights which cover numerous employment issues.