With the rising prevalence of wage-and-hour lawsuits, not to mention other categories of costly and complex litigation, employers increasingly see such suits as “a cost of doing business.” Berger Kahn attorneys Erin Mindoro Ezra, Heather Whitmore, and Ryan Fitzgerald explore these emerging concerns in their recent article, “Paying the Price: Wage-and-Hour Claims and the Limits of Insurance.”
In this article, they discuss the harsh reality that employers are met with — Employment Practices Liability Insurance (“EPLI”) policies do not cover wage-and-hour claims. EPLI policies could place limited coverage for defense costs only, but will not pay potential money that may be owed to allegedly underpaid employees.
This article addresses the absence of insurance and emphasizes the need for employers to err on the side of caution when establishing wage-and-hour best business practices.