Tip of the Day: Lawyer up

If 2008's figures on ERISA and FLSA lawsuits are any indication, employers can expect even more legal filings this year, as employees continue to lose their jobs in the economic recession, predicts international law firm Seyfarth Shaw.

According the 5th Annual Workplace Class Action Litigation Report compiled by Seyfarth Shaw, the top 10 ERISA class action settlements entered into or paid in 2008 totaled $17.7 billion, up from the $1.818 billion settlement tally of the previous year.

The firm attributed the exponential increase to more "stock drop suits," where the retirement plan participants challenge the perceived lack of employer stock as an investment option, and "plan administration" suits challenging excessive advisory fees and other mechanics of the plan. Click here to learn about other key findings from the report.

Related EBN coverage:
DOL finalizes civil penalties against plan sponsors

Tip of the Day

There really is no such thing as a free lunch, as the Department of Labor's Fair Labor Standards Team recently ruled employers "must compensate the employee for all hours worked, including the time worked during the missed meal period." The ruling follows an inquiry from an employer asking how to interpret the Fair Labor Standards Act if an employee works through a designated lunch period if doing so violates company policy. If your company mandates meal breaks, be sure to read the DOL's opinion letter on the topic.