Mediation of Class Actions on Wage-and-Hour MattersApril 3, 2015 – In The News
Carolyn Richmond was quoted in the New York Law Journal article “Mediation of Class Actions on Wage-and-Hour Matters.” Full text can be found in the April 3, 2015, issue but a synopsis is below.
Class actions against employers alleging illegal pay practices under the Fair Labor Standards Act (FLSA) and under state labor laws continue to increase in both federal and state courts throughout the country and particularly in the New York metropolitan area.
Given the high stakes and complexity of class wage-and-hour disputes, and the criteria for court approval of wage-and-hour class settlements, many claims are submitted to mediation.
“Attorneys' fees and other statutory penalties can be so crippling, that it behooves an employer to 'reality test' any factual disputes in mediation before running up substantial fees and expenses that will impede settlement negotiations later on,” said Carolyn Richmond.