Companies report rise in labor and employment class actions

Aggressive regulatory action and an increase in workplace safety claims, including many related to the COVID-19 pandemic, have fueled a rise in labor and employment (L&E) collective claims, including "follow-on" class actions, according to Carlton Fields’ 2022 class action survey. 

3.1% increase in 2021

In 2020, L&E class actions comprised 22.5% of all such claims managed by companies participating in Carlton Fields’ survey. In 2021, they rose just over three percentage points to 25.6%.

L&E cases remain the largest category of class actions. In 2020, they were just ahead of consumer fraud class actions, but between the increase in L&E class actions and a decrease in consumer fraud class actions, the L&E cases now hold a more significant lead as the largest type of class action.

Companies continue to report L&E class actions as one of the most concerning and costly categories of collective claims. In addition to the costs directly associated with the claims (including defense and settlement costs), companies also report concern over indirect costs such as negative publicity and reputational harm.

What's contributing to jump

Several factors likely contributed to the increase in L&E class actions: