Litigation is on the rise for state overtime compliance.

CCH Human Resources Management reports that claims of state overtime violations are increasing due to the attention that the new white-collar regulations of the Fair Labor Standards Act (FLSA) received. The change caused many plaintiff’s attorneys to focus their efforts on the differences between the federal and state requirements. Steven S. Greene, managing member of the law firm of Helms & Greene, LLC, while speaking at WorldatWork’s 2007 Conference and Exposition, stated that attorneys are exploiting the material differences between the federal and state standards, causing settlements and verdicts to soar.

StaffScapes, a Colorado based Professional Employer Organization (PEO), guides our clients through the complicated maze of human resource management, including state and federal labor law compliance. Please contact us at 303-466-7864 or info@staffscapes.com to discuss what our services can do for you.

2007 EEOC discrimination charges jumped to highest level in five years

The US Equal Employment Opportunity Commission (EEOC) reported a total of 82,792 private sector discrimination charges were filed in fiscal year 2007. This is the highest volume of incoming charges since 2002, and the largest annual increase (9%) since the early 1990s, according to the federal agency’s enforcement and litigation statistics.

Let’s face it, litigation is a fact we all have to deal with.  And, if you are a business owner, chances are even greater that at some point in your career you will be directly impacted.  Lora Manternach, Benefits Administrator for StaffScapes, Inc. recently attended a legal updates seminar presented by Fisher & Phillips, LLP.  Here’s a few key statistics that they shared that you need to know:
 
1.    Lawsuits are up almost 400% over the past 20 years
2.    Most common target for lawsuits is private employers with 5-100 employees
3.    In federal court, 67% of all awards exceed $100,000 with the average compensatory damages awarded at almost $500,000

One large area of litigation centers around EEOC (Equal Employment Opportunity Commission) claims.  As expected, filings have increased and in fact set a record high of 95,402 in 2008.  This marked a 15.2 % increase from the year before.  The response is that the EEOC has become more aggressive aided by a $23 million dollar budget increase.  After hiring an additional 300 employees, the EEOC has collected $274 million, filed 290 “merit” lawsuits, focused additional attention to class actions and systemic violations and worked to change enforcement policies.

What’s the best way to mitigate potential claims?  We recommend establishing policies and procedures and/or making sure current handbooks are up to date.  Keeping consistent is key in how you deal with daily operational situations.  For further assistance, please contact StaffScapes, Inc. at 303-466-7864 or info@StaffScapes.com.