New research shows how much class-action lawsuits against employers have increased and the need for employers to take action to prevent legal missteps.
The top 10 settlements in employment discrimination class actions totaled $597 million in 2022. The top 10 settlements in wage and hour class actions totaled $574.55 million, and the top 10 settlements in Employee Retirement Income Security Act class actions totaled $399.6 million, according to a new report from Duane Morris.
In recent years, "jurors are more apt to find for plaintiffs, and when they find for plaintiffs, they are apt to award more money than they used to," said Gerry Maatman Jr., an attorney with Duane Morris in Chicago. It's a "perfect storm of factors that has driven up the cost of settlements."
Courts greenlighted more class-action certifications in Fair Labor Standards Act cases than in any other type of case in 2022.
"Success begets copycats," Maatman said, so employers can expect more of the same trends in case filings and settlements in 2023.
One new area of focus for class actions is workers suing employers for using biometric technology, based on the Illinois Biometric Information Privacy Act. "[T]hose sorts of lawsuits are accelerating at a quicker pace," Maatman said. "2023 is going to be the year where privacy issues are going to confront employers, and those employers that have privacy policies in place will be well-served. The notion of privacy and what privacy means, especially in the...
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