Hitting an all-time high, federal wage and hour lawsuits increased by 10 percent with 7,764 cases filed under the Fair Labor Standards Act for the year ended March 31, according to a report by law firm Seyfarth Shaw LLP.
The report, which bases its findings on data from the Washington-based Federal Judicial Center, notes that cases grew by just 1 percent in 2012 for a total of 7,008 cases.
There was no clear-cut reason for the increase, the firm said.
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"With no clear catalyst during the past 12 months, this strong spike and new high for FLSA claims makes them one of the top threats to U.S. employers," Richard L. Alfred, partner of Seyfarth Shaw, said in a statement. "We've seen an astonishing rise in FLSA claims, but with a slim 1 percent increase in 2012, it's surprising to see a sharp increase like this."
Alfred believes there are several factors that could influence this growth. In particular, as the economy improves, it could be an enticement for plaintiff attorneys to sue new companies that lack the sophistication of others. With a better economy, employment demands for all employees have gone up, and this could cause employees to feel more skeptical regarding employer pay practices.
Large settlements that are coming from wage and hour lawsuits could be influencing attorneys, as well, Alfred said, and social media access is causing employees to feel more informed about wage and hour issues.
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