EPL policies often exclude coverage for "Wage and Hour" claims brought by employees. Wage and Hour responsibilities are dictated by the Fair Labor Standards Act of 1938. Examples of such claims include:
- Failing to pay overtime
- Paying overtime at regular wage rates
- Failing to pay minimum wage
- Failing to provide commission to salespersons
- Failing to make or delaying payment of an employee's final check
In April 2010, the Department of Labor launched the "We Can Help" campaign to assist employees in filing these claims.
The DOL is launching a series of posters, booklets and PSAs to educate workers about their rights.
The DOL has ceased providing "opinion letters" to employers to help them stay in compliance with regulations.
Non-government wage & hour settlements increased 44% in 2009 over 2008.Is your company at risk for this type of claim? Here's how to proceed:
- Educate yourself about your responsibilities under the law. DOL FLSA Compliance Assistance
- Check your Employment Practices Liability (EPL) policy to see if it excludes Wage & Hour claims.
- If it does, talk to your agent about adding the coverage back by endorsement. This can usually be done for some additional premium. Whenever there's an exclusion, there's usually a way to buy the coverage back