Josh Holden addresses FLSA and Wage & Hour claims
Hi, I'm Josh Holden with your ABA Insurance Services' #ProTip.
Today, we'll be talking about Employment Practice Liability Insurance, specifically the Fair Labor Standards Act or FLSA.
The FLSA is a federal law which establishes minimum wage overtime pay and other standards affecting full and part-time inn both public and private sectors.
Alleged violations of the FLSA can result in Wage & Hour claims brought by an employee against an employer.
For example, one common Wage & Hour claim is the failure to properly compensate for overtime, but claims can run the gamut from employee misclassification to failure to grant meal breaks to unauthorized off-the-clock work.
Wage & Hour claims are becoming more common. A quick Internet search will confirm that frequency and severity of FLSA claims are increasing.
Small businesses and nonprofits are not immune from the insurance perspective. Coverage for FLSA claims are not on all policies--check the "Exclusions" portion of the policy to see if Wage & Hour coverage is included.
Of course, if you have any questions, we're here to help you. For more information about our EPLI or other insurance programs for small businesses or nonprofits, visit abais.com/EPLI