Why should San Diego employers be so concerned about the new federal overtime regulations released last week?  Why will FLSA overtime lawsuits explode later this year?  Quite simply: history.  The last time the Department of Labor (DOL) made significant changes to the FLSA overtime rules was in 2004.  At that time, the number of federal FLSA overtime lawsuits averaged around 3,000 cases per year.  That number had jumped to more than 7,000 cases in less than 3 years (almost 2.5 times the number of cases) and has skyrocketed to almost 9,000 cases last year.

Does that number sound low to you?  Perhaps you are thinking “Well, that’s 9,000 cases nationally which only amounts to 180 cases per state per year.  This won’t affect us… will it?”

The vast majority of these cases are settled out of court.  The number of unpaid overtime cases here in California has more than tripled over the past 3 years alone.  Most experts believe the same sort of “spike” in lawsuits that followed the 2004 changes will follow the changes when they come into force later this year on December 1.  How can you avoid unpaid overtime allegations and litigation?

The Watkins Firm advises our clients, and helps each to develop a strategy based upon the unique work culture within their company.  San Diego employers have several options to come into compliance with the new federal overtime laws and avoid FLSA overtime lawsuits.  Perhaps the strongest option is to ensure changes to employment agreements, employee handbooks, policies and procedures manuals and actual management practices are modified to ensure that no employees work more than 40 hours per week without advanced written permission to do so.

Our “lawyers for employers” will help you to develop internal strategies to prevent exposure to unpaid overtime allegations, and meet all aspects of the new DOL FLSA overtime regulations by December 1.  We invite you to contact us for a free and substantive consultation at 858-535-1511.