Wage and hour compliance has always been complex. But for HR and operations leaders—especially in light industrial, logistics, and high-turnover environments—the risks are growing fast.
In a recent HR HotSpot webinar, Aaron Goldstein, a partner at Dorsey & Whitney LLP and a seasoned employment attorney with deep experience in wage and hour law across Washington, Oregon, and California, joined Verstela’s Chief Strategy Officer, Jenifer Lambert, for a conversation that was equal parts warning and roadmap.
Aaron didn’t just outline the risk—he explained how aggressive new tactics are reshaping wage and hour litigation, and what employers can do now to reduce exposure, prepare smarter, and make themselves harder to sue.
The threat isn’t new. But the tactics are. And for companies caught off guard, the cost of not preparing can be enormous.
Why this conversation matters now
Plaintiff’s firms are expanding beyond California, bringing aggressive legal strategies with them. They’re not just targeting bad actors—they’re betting that most employers have some wage and hour error they can use to spark a costly class action.
As Goldstein explained, “At least 90% of the time, maybe it’s 99%, you cannot win these cases in litigation. You can only mitigate the damage.”
Four takeaways HR leaders should act on
1. The legal playbook has changed—have you?
Wage and hour class action filings in California have more than doubled since 2017. Now, firms with deep war chests and junior attorney armies are moving into new states—bringing California-style tactics with them.
What this means for you: Even minor mistakes (like one missed break) can be used to justify high-dollar demands.
2. Small errors can trigger big settlements
Misclassified roles. Auto-deducted lunches. Incorrect overtime on commissions. Goldstein shared a real example: a two-minute meal break error for 50 employees, repeated daily, added up to nearly $900,000 in liability—not including legal fees.
What this means for you: These claims aren’t always about egregious wrongdoing—they’re about cumulative risk.
3. Documentation matters more than good intentions
“Doing the right thing” isn’t enough without records to back it up. That means keeping accurate time records, collecting meal and rest break affirmations, and documenting exemptions, waivers, and payout practices.
What this means for you: Without documentation, you’re exposed—even if the claim is inaccurate.
4. Prevention is the real win
Goldstein emphasized that it’s not about scrambling after a lawsuit hits. It’s about taking thoughtful steps that make you a harder target and a cheaper case to settle.
What this means for you: A strong compliance foundation, supported by policies, audit trails, and (in some cases) arbitration clauses, gives your team options—and leverage—if a claim arises.
Watch the full conversation
This session offers practical advice, real-world scenarios, and prevention strategies HR and operational leaders can start implementing now.
Approved for SHRM and HRCI recertification credits.
A final thought: preparedness > perfection
As Goldstein put it, “Even a two-minute mistake can cost you nearly a million dollars.” But the good news? You don’t have to be perfect. A thoughtful, documented approach can make a meaningful difference in both risk and outcomes.
Explore more sessions
If you’re looking for more legal insights, compliance tips, and practical strategies for managing your workforce, explore our HR HotSpot webinar archive.
Each session is led by subject-matter experts and designed to help you lead with confidence—and they’re eligible for HRCI and SHRM recertification credits.
