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Protecting Your Business From Wage And Hour Class Action Lawsuits

Wage and hour class action lawsuits can dismantle a business with the costs of paying out a settlement or with the expenses of a court battle. Protecting your business from these risks is paramount for business owners, particularly those who employ a large number of individuals. Class action lawsuits arise when a large number of plaintiffs are suing a single defendant, as is common when many individuals sue a business. These types of lawsuits are common in product liability cases, white collar crimes, or contract disputes.

However, these legal issues can also arise between employees and employers. If legal protocols are not adhered to in the payment and treatment of employees, they may take legal action against their employers to seek justice. Understanding how class action lawsuits function in New York and how to avoid them can help prevent massive losses for business owners. Additionally, awareness of New York wage and hour laws can help institute preventative measures to improve employee morale and avoid the necessity for legal action in the first place.

For more insight into protecting your business, schedule a consultation with a New York business litigation attorney from Schwab & Gasparini. Call the Syracuse Office at (315) 422-1333, the Albany Office at (518) 591-4664, the White Plains Office at (914) 304-4353, or the Hudson Valley Office at (914) 304-4353 to schedule a consultation today.

What Are Class Action Lawsuits?

Class action lawsuits are legal matters with numerous plaintiffs and a small number of defendants, which generally restrict these issues to business litigation, product liability, and occasionally wage and hour law matters. Generally, in any legal or consumer arrangement in which a business or individual is serving a large number of people, there is a risk of a class action lawsuit. Due to the inefficiency of hearing every individual case, when a large group is petitioning the same or equivalent complaint, these individuals are considered a “class” and will often proceed as a single case or a reduced number of cases.

Class Action Requirements

For a class action suit to be valid, it must meet certain criteria, according to the New York Senate. Not every group of litigants will qualify as a class that can file a class action lawsuit. This type of lawsuit generally requires a number of plaintiffs that is so large it would be impractical and inefficient to try each case individually. Additionally, these plaintiffs must be presenting legal issues and complaints that are similar enough to be considered together. These plaintiffs must also be presenting complaints that are common to the group they are representing, and it must be adequately assured that the individuals representing the class will advocate for the needs and perspectives of the entire class of litigants. Considering these qualifying factors is a key step in protecting your business from class action claims.

Consider speaking with a skilled New York business litigation attorney from Schwab & Gasparini today to learn more about protecting your business.

Overtime and Minimum Wage Violation

A common form of class action lawsuit in the business sector regards wage and hour violations. New York has some of the most stringent wage and hour laws in the country, and many metro areas have unique considerations. Paying below minimum wage, failing to account for overtime considerations, or failing to provide adequate rest and meal breaks could lead to a class action lawsuit. This is one of many ways that understanding wage and hour laws can help protect your business from legal action. Additionally, attention to these laws and statutes can help improve company culture and boost employee morale.

Mass Misclassification

Another common legal issue in business law is the misclassification of employees. Employees are considered a part of a company and are entitled to certain benefits and legal protections, while independent contractors are allowed more freedom and autonomy in exchange for these protections. However, some businesses may misclassify their employees either by mistake or with the intent to avoid providing these benefits. Mass misclassification of employees could deprive many employees of their rights, leading to frustration, dissatisfaction, and even legal action. Understanding how to classify employees can help protect a business effectively.

Protecting Your Business from Class Action Lawsuits

A skilled business litigation attorney may be able to provide strategies for navigating these legal challenges that are unique to your business. However, many common strategies for protecting your business from lawsuits may apply to class action suits as well. A proactive strategy is often key to protecting your business, as many expensive and complex legal challenges can be avoided with legal experience and attention to detail. Class action lawsuits can have incredibly detrimental effects on businesses, as they tend to be expensive to litigate and difficult to settle. Often, protecting against them with preventative action is the most effective way to resolve these issues.

Liability Insurance

Many businesses utilize liability insurance to protect against damages in the event of a lawsuit. While there are many forms of liability insurance, some specialized forms may help protect businesses from the legal fallout of class action lawsuits. Some forms of insurance are required for business owners, but conducting research and ensuring that insurance policies adequately cover the needs and risks of the business can be beneficial. Additionally, resources such as the New York State Department of Financial Services may provide specialized insight into liability insurance.

Preventative Action

Additionally, business structure and developing company policy can help avoid these legal issues by addressing them before they become problems. A proper business structure can help equip business owners to care for their employees. Protecting your business means protecting your employees, which often involves reviewing legal standards, accounting for their needs, and regularly evaluating wage and hour compliance. A skilled New York business lawyer can help evaluate the needs of your business to assist in addressing compliance issues.

Speak to a New York Business Litigation Attorney

Class action lawsuits could financially ruin a business, particularly small and growing businesses in New York. The costs of litigation, as well as the potential for large settlements to plaintiffs, could pose a significant problem for business owners. Fortunately, preventative action and proactive business practices can help mitigate the risk of these lawsuits and aid in protecting your business. Addressing wage and hour laws and supporting employees can help promote company welfare and strengthen a business as a whole. For more details, speak with a New York business litigation attorney from Schwab & Gasparini in a personalized consultation. Call the Syracuse Office at (315) 422-1333, the Albany Office at (518) 591-4664, the White Plains Office at (914) 304-4353, or the Hudson Valley Office at (914) 304-4353 to schedule today.

Mon Oct 13 2025, 12:00am