Employment lawsuits are increasing and so are the settlements. In 2017, the top employment-related settlements totaled $2.72 billion (SHRM, 2018). This is almost $1 billion more than the total in 2016. Wage & hour settlements grew to over $1.2 billion/yr becoming the highest exposure to businesses as we proceed to 2020. Classification errors are some of the most noteworthy issues.
SHRM suggests focusing on prevention to minimize risk and save on unpredictable expense. HR specialists assist with state & city wages, time keeping and tracking, training, wage & hour audits, and classification of workers.
“A dollar spent on risk management and compliance is better than a dollar spent on settling a class-action lawsuit…Businesses can reduce litigation risks by having solid HR practices in place” Maatman (SHRM, 2018).