Employment law class action claims and settlements reached record highs in 2021, according to the latest report from Seyfarth Shaw, LLP. Settlement numbers totaled $3.62 billion in 2021, more than double the total from 2020, and nearly triple the total from 2019.
- Wage and hour settlements were particularly on the rise, more than doubling from the previous year. Further, claims against employers involving sexual misconduct, harassment or abuse increased tenfold.
- Class certifications had a success rate of over 80%, the second highest rate in over two decades. In discrimination cases, the success rate increased by nearly 30% from the previous year.
A new administration and COVID-19 were major factors in the record increases in class action claims and settlements. The Biden administration has significantly ramped up enforcement litigation through the DOL, OFCCP, and EEOC as part of an aggressive labor and employment law and policy strategy. Meanwhile, COVID-19 continues to provide the plaintiffs’ bar with numerous opportunities for class action litigation—return to work programs and vaccine mandates created a spike in claims in the fourth quarter of 2021.
Outlook: The report serves as notice to employers to make a particular focus on compliance with workplace laws as they face scrutiny from the Biden administration and an increasingly aggressive plaintiffs’ bar.