Click on the image above to explore B.A.D. Manufacturing’s facilities and learn about five common wage and hour violations. Warehouse workers, sales reps and truckers alike have sued this fictitious company for lost wages.
Workers and employers lose over $200 million yearly to wage and hour violations
In the U.S., every business that generates $500,000 in income – or meets certain interstate commerce requirements – must operate in accordance with the Fair Labor Standards Act (FLSA) or risk class-action lawsuits that can cost them millions of dollars in defense costs and settlements.
In addition to lawsuits, companies who violate the FLSA can also face penalties from the U.S. Department of Labor’s Wage and Hour Division (WHD). The WHD reported in 2020 that over the previous five years, it recovered more than $1.4 billion in back wages for workers in virtually every industry.
Yet many businesses remain uninsured beyond their standard employment practices liabilities coverage, which often only covers legal costs.
“Many clients just take the defense costs coverage because they don’t realize that there is coverage for the actual loss,” says Kimberly Lewis, VP, Professional Lines, for Argo Insurance. “But there is.”
Argo offers a unique, tailor-made wage and hour product
Since 2017, Argo Insurance in Bermuda has offered stand-alone wage and hour insurance for small to midsize U.S. enterprises in any industry. Lewis says focusing on companies with 10,000 or fewer employees gives Argo a unique position in the market.
“Most of the Bermuda market will write wage and hour for all sizes, while we concentrate on the smaller corporations,” Lewis says. “We can also offer retention as low as $500,000, which a lot of the SMEs are looking for. Most other insurers in Bermuda start at $2 million.”
Argo Insurance writes wage and hour policies in all 50 U.S. states. While all states have the potential for wage and hour claims, employers in California and New York are at a particularly high risk.
Learn more about wage and hour coverage available through Argo Insurance Bermuda.