Will New DOL Overtime Rules Cause Spike in Collective Actions?

 The financial stakes in a collective action under the Fair Labor Standards Act (“FLSA”) dwarf many other types of employment litigation. These stakes entail personal liability for an employer’s leaders.  These stakes are predicted to skyrocket in 2017 when new overtime rules unveiled this week by the U.S. Department of Labor  (“DOL”) become effective.  U.S. businesses, as well as their individual leaders, should thus be concerned about their vulnerability to a potential spike in FLSA collective actions in 2017.

 

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