Historically, employment practices liability insurance (EPLI) hasn’t covered Fair Labor Standards Act (FLSA) and similar state law claims, so employers shouldn’t mistakenly assume they’ll be reimbursed by EPLI for their wage and hour claims. Nonetheless, employers may be able to recoup their attorney fees and defense costs, even for wage and hour claims, and perhaps more, depending on the terms of their EPLI policies.
“Often, insured businesses mistakenly believe that they are covered for all workplace litigation, regardless of the underlying claim,” said Jeff Ruzal, an attorney with Epstein Becker Green in New York City.
