Wage and hour has consistently been the area with the greatest increase in multi-plaintiff actions for US respondents, and wage and hour is also the area that respondents believe will see the greatest increase in the next 12 months.
Fulbright & Jaworski LLP’s 8th Annual litigation Trends Survey is out, and the results might be a good roadmap for 2013 planning.
Costs of Litigation Are Staggering
Fifty-one percent (last year, the number was 40%) of US companies indicated they spend over $100,000 excluding the cost of settlement, to litigate a single plaintiff employment case to conclusion; 21% estimate the cost at $200,000 or more.
In which area has there been the greatest increase in multi-plaintiff cases?
Which types of cases create the most monetary exposure?
Finally, a simple but comprehensive guide to wage and hour. Correctly apply the FLSA, remain the go-to expert with BLR’s comprehensive guide. Save hours of research time. Go here for information or to order Wage & Hour Compliance: Practical Solutions for HR.
In which categories were class/group actions brought against your company in the past 12 months?
Class actions settlements have the edge over dismissals across most of the survey sample. More than 60% of the larger companies have settled one or more class actions in the last 12 months, compared with 45% that have achieved a dismissal.
Eighty percent of US Respondents say these class action claims are being brought in state jurisdictions.
Do you expect the number of legal disputes your company will face in the next year to increase, decrease, or stay the same?
Most expect an increase, the survey suggests.
“Stricter regulations” was the number one reason for the total sample expecting an increase in litigation. Worrys that the economy would cause more disputes declined, down from 41% to 21%.
Wage and hour lawsuits are expensive—and easily prevented. Here’s how to protect against crippling judgments. Go here for information or to order Wage & Hour Compliance: Practical Solutions for HR
How many lawsuits against your company commenced in the last 12 months?
The most numerous types of litigation pending in the last 12 months In the US were Labor and Employment (at 46 percent), Contracts ( at 44 percent), and Personal injury (at 23 percent).
What is the effectiveness of alternate fee arrangements with outside attorneys in the US?
The use of Alternative Fee Arrangements (AFAs) among all respondents has steadily increased from 45% in 2009, 51% in 2010, and 62% in 2011. The chart below indicates which arrangements are most and least effective.
In tomorrow’s Advisor. More litigation survey results, plus an introduction to a real lawsuit preventer—Wage & Hour Compliance: Practical Solutions for HR.