HR Tip: Workplace class-action settlements at all-time high in 2021 and expected to rise in 2022

According to the Annual Workplace Class Action Litigation Report: 2022 Edition issued by Chicago-based Seyfarth Shaw LLP, the top 10 settlements in various employment-related class actions categories exceeded $3.26 billion in 2021, compared with $1.58 billion in 2020 and $1.32 billion in 2019. While many expected the pandemic would slow down the pace and size of settlements, workplace class actions brought by states, employee advocates, unions, and employer groups "erupted over regulatory actions and employer policies."

Wage and hour litigation is a "sweet spot" for class action, with plaintiffs winning over 80 percent of the conditional certification rulings under the Fair Labor Standards Act. Litigation alleging an agency exceeded its authority to regulate employment conditions had mixed results, with courts granting about 41 percent of requests for temporary restraining orders or preliminary injunctions to date, the report said.

Looking ahead to cases this year, it's expected the COVID-19 pandemic will generate more workplace class-action, particularly for wage and hour issues. The pandemic presents uncharted territory and there is often conflict about the adequacy of safety protocols and enforcement. Additionally, shifting job duties may mean employees are newly entitled to overtime pay under the Fair Labor Standards Act. Religious discrimination suits are expected to continue around vaccination mandates. Moreover, with the Great Resignation, workers know job opportunities are plentiful and are more willing to participate in class action suits.