Citing outdated labor laws enacted to reduce industrial violence in the 1930s, coupled with the last two years of a decidedly pro-labor Obama administration and the potential for big-money settlements, a Chicago-based lawyer at employment law firm Seyfarth Shaw predicts an increase this year in class-action suits. The firm predicts many plaintiffs will seek to resolve questions over issues such as:
- Disputed overtime pay
- What constitutes the 21st-century definition of an "employee" with so many workers now paid as independent contractors?
- Whether defined-contribution retirement plans can offer company stock as an investment choice?
- Potential union representation for college athletes
Even in the face of some high-profile U.S. Supreme Court decisions that appear to have dealt a blow to class-action suits in favor of employers, the Seyfarth Shaw lawyer predicts companies will also see more discrimination suits brought on behalf of the Equal Employment Opportunity Commission (EEOC), as well as actions pertaining to ERISA, which resulted in settlements last year totaling an estimated $1.3 billion.