Wage and Hour Preferred Solution

The top 10 wage and hour settlements in 2017 totaled $525 million, the second-highest figure in the last decade, according to law firm Seyfarth Shaw. This expanding area of litigation includes allegations by employees and independent contractors regarding overtime pay, meal and rest breaks, and misclassification. These can result in staggering amounts of defense costs, settlements, judgments, and penalties, but employment practice liability insurance (EPLI) policies typically exclude wage and hour claims.

Marsh’s Wage and Hour Preferred Solution offers broad coverage for wage and hour claims that are typically excluded under traditional EPLI policies and most directors and officers (D&O) liability policies for public companies. The policy includes:

• A definition of “claim” that includes claims brought by the US Department of Labor (DOL) as well as individuals such as independent contractors and employees.
• A broad definition of “wage and hour wrongful acts,” including failure to pay overtime and provide meal and rest breaks.
• A definition of “loss” that includes defense costs, settlements, and judgments.
• Coverage for collective and class-action wage and hour claims.
• A non-duty to defend policy (except for the London insurers); insureds may select their own counsel but may need consent in certain instances.
• Capacity of up to $210 million.

Policyholders can also benefit from a unique wage and hour risk management toolkit — provided at no additional cost by Mercer — that can help companies identify and address potential exposures under the Fair Labor Standards Act (FLSA). Marsh’s claims advocates also have specific wage and hour expertise that can help you more effectively and efficiently resolve any claims.