With the number of wage and hour claims against employers on the rise, Marsh has announced a new insurance product that reimburses companies for defense costs, settlements, and judgments for actual or alleged violations of the Fair Labor Standards Act (“FLSA”) or similar state and local laws.
The “Marsh Wage and Hour Preferred Solution” provides up to $100 million of insurance coverage for wage and hour claims, including allegations that an employer failed to pay employees for overtime hours worked, failed to provide or pay for meal breaks and rest periods, or misclassified employees as exempt rather than non-exempt from legal overtime provisions.
According to Marsh, the new product is tailored for companies with more than 4,000 employees and includes a wage and hour risk management toolkit, provided by Mercer, to assist companies in identifying and addressing potential areas of exposure under the FLSA.
“Wage and hour exposure remains the single largest employment practices–related exposure for US employers, but employers have historically had limited protection from the often staggering costs of wage and hour claims,” said Adeola Adele, Marsh's Employment Practices Liability Insurance Product Leader. “The Marsh Wage and Hour Preferred Solution addresses this key exposure through a risk transfer product, and, at the same time, provides companies with an assessment toolkit to assist in proactively managing their exposure.”
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].