Wage and hour class actions can create significant financial exposure for organizations, particularly when claims remain unresolved for an extended period. Early assessment of potential exposure, effective defense cost management, and a clear strategy for mediation can help organizations make informed decisions and avoid unnecessary escalation.
In this case, the EPL team became involved in a wage and hour class action with exposure exceeding $125 million after the matter had already been pending for three years. There had been no previous exposure analysis or defense budget in place, limiting visibility of potential financial risk.
The team developed a comprehensive exposure analysis and defense budget to establish a clearer understanding of the claim and support strategic decision-making ahead of mediation. Working closely with defense counsel, the team also supported settlement negotiations and maintained a focus on achieving a commercially appropriate resolution.
Key outcomes included:
- The matter settled for $2.5M, the lowest amount within the $2.5M to $6M range recommended by defense counsel
- Exposure analysis established to support informed claims decisions
- Defense budget established to support risk assessment and mediation preparation
- Strategic mediation support provided throughout settlement negotiations
- Long-running litigation brought towards resolution through proactive claims management
The case demonstrates the value of bringing structured EPL claims management to complex and high-exposure matters. By combining exposure analysis, defense cost oversight, and strategic negotiation, organizations can gain greater control over both financial risk and the direction of litigation.
Our EPL team works collaboratively with clients, insurers, HR teams, and defense counsel throughout the lifecycle of a claim, helping to develop appropriate litigation and resolution strategies while monitoring reserves, legal spend, and opportunities for early settlement.
Brian Smith
Nicholas Gumpel
Tim Over
Rob Blasio
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