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How Employers May be Held Liable for EPLI Wage and Hour Dispute Claims

How Employers May be Held Liable for EPLI Wage and Hour Dispute ClaimsHow Employers May be Held Liable for EPLI Wage and Hour Dispute Claims

When it comes to employment law, your Professional Liability clients likely have many questions. One of the most common questions employers have is about how to avoid EPLI claims. To answer this question, it’s important to know what EPLI claims are the most common. Employment lawyers tend to take EPLI Wage and Hour Dispute Claims the most seriously when it comes to employment law.

EPLI Wage and Hour Dispute Claims are filed under the Fair Labor Standards Act of 1938 (FLSA). The FLSA introduced a maximum 44-hour, seven-day workweek, established a national minimum wage, guaranteed “time-and-a-half” for overtime in certain jobs, and prohibited most employment of minors in “oppressive child labor”. Under this act, employers can be financially responsible for and held liable for EPLI wage and hour dispute claims in a number of ways:

By misclassifying an employee.  Business owners often mistakenly believe that paying a salary qualifies an employee as “exempt”. However, in addition to the salary basis, each “exempt” employee’s job activities must also satisfy the applicable duties test outlined in the FLSA, regardless of any written agreement between the parties.

By treating and independent contractor as an employee. If an employer exercises too much control over a worker, the worker is likely to be more of an employee rather than an independent contractor. If a wage claim is brought or an audit is triggered, an employer might discover that all of its independent contractors are deemed employees and owed significant amounts of money in overtime.

By not following good time-keeping practices. Some businesses allow employees to clock in before their shift begins; however only pay them for their scheduled hours. If employees don’t receive pay for the additional time that they worked, they have the basis for an EPLI wage and hour dispute claim.

These are a few ways your clients may be held financially responsible for EPLI wage and hour dispute claims. At PL Risk Advisors, we feel that EPLI, or Employment Practices Liability Insurance, should be part of your client’s comprehensive insurance program. Please contact us today at (855) 403-5982 to learn more about our EPLI coverage and Professional Liability products.

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