Wage and hour compliance has at all times been complicated. However for HR and operations leaders—particularly in gentle industrial, logistics, and high-turnover environments—the dangers are rising quick.
In a current HR HotSpot webinar, Aaron Goldstein, a companion at Dorsey & Whitney LLP and a seasoned employment lawyer with deep expertise in wage and hour regulation throughout Washington, Oregon, and California, joined Verstela’s Chief Technique Officer, Jenifer Lambert, for a dialog that was equal components warning and roadmap.
Aaron didn’t simply define the chance—he defined how aggressive new ways are reshaping wage and hour litigation, and what employers can do now to scale back publicity, put together smarter, and make themselves tougher to sue.
The menace isn’t new. However the ways are. And for corporations caught off guard, the price of not making ready will be monumental.
Why this dialog issues now
Plaintiff’s companies are increasing past California, bringing aggressive authorized methods with them. They’re not simply concentrating on unhealthy actors—they’re betting that almost all employers have some wage and hour error they will use to spark a pricey class motion.
As Goldstein defined, “A minimum of 90% of the time, possibly it’s 99%, you can’t win these circumstances in litigation. You may solely mitigate the injury.”
4 takeaways HR leaders ought to act on
1. The authorized playbook has modified—have you ever?
Wage and hour class motion filings in California have greater than doubled since 2017. Now, companies with deep conflict chests and junior lawyer armies are shifting into new states—bringing California-style ways with them.
What this implies for you: Even minor errors (like one missed break) can be utilized to justify high-dollar calls for.
2. Small errors can set off huge settlements
Misclassified roles. Auto-deducted lunches. Incorrect time beyond regulation on commissions. Goldstein shared an actual instance: a two-minute meal break error for 50 workers, repeated each day, added as much as practically $900,000 in legal responsibility—not together with authorized charges.
What this implies for you: These claims aren’t at all times about egregious wrongdoing—they’re about cumulative threat.
3. Documentation issues greater than good intentions
“Doing the best factor” isn’t sufficient with out information to again it up. Which means protecting correct time information, gathering meal and relaxation break affirmations, and documenting exemptions, waivers, and payout practices.
What this implies for you: With out documentation, you’re uncovered—even when the declare is inaccurate.
4. Prevention is the true win
Goldstein emphasised that it’s not about scrambling after a lawsuit hits. It’s about taking considerate steps that make you a tougher goal and a less expensive case to settle.
What this implies for you: A robust compliance basis, supported by insurance policies, audit trails, and (in some circumstances) arbitration clauses, provides your workforce choices—and leverage—if a declare arises.
Watch the total dialog
This session affords sensible recommendation, real-world situations, and prevention methods HR and operational leaders can begin implementing now.
Permitted for SHRM and HRCI recertification credit.
A remaining thought: preparedness > perfection
As Goldstein put it, “Even a two-minute mistake can price you just about one million {dollars}.” However the excellent news? You don’t need to be good. A considerate, documented strategy could make a significant distinction in each threat and outcomes.
Discover extra periods
When you’re searching for extra authorized insights, compliance ideas, and sensible methods for managing your workforce, discover our HR HotSpot webinar archive.
Every session is led by subject-matter consultants and designed that can assist you lead with confidence—they usually’re eligible for HRCI and SHRM recertification credit.
