04/03/2026
Wage & Hour Lawsuits Are Climbing — And Insurance Isn’t Saving Employers
Recent reporting highlights a sharp rise in wage-and-hour class and collective actions in 2025, with large settlements (including high-profile cases like Disney) reminding employers how expensive these claims can become.
Here’s the part many companies miss:
Most Employment Practices Liability Insurance (EPLI) policies do not cover wage-and-hour damages or settlements.
That means:
Misclassification issues
Overtime calculation errors
Off-the-clock work claims
Meal and rest break violations
Improper pay practices
…can quickly turn into six- or seven-figure exposure — largely uninsured.
We’re seeing more employers assume their insurance will protect them, only to find out coverage is limited to defense costs (if that).
In today’s enforcement and litigation environment, proactive compliance matters more than ever.
Smart employers are:
✔ Auditing exempt vs. non-exempt classifications
✔ Reviewing overtime calculations and payroll practices
✔ Evaluating timekeeping and scheduling policies
✔ Conducting preventative compliance reviews
The cost of prevention is almost always lower than the cost of one class action claim.
If you’re not sure where your exposure stands, it may be time for a review.
Call us for a free review 832-279-5834
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