Although there are FLSA actions brought all over the country, the statistics show that the Southern District of Florida is the (dubious) leader in such suits.  Commentators attribute this disproportionate number to the “pervasive” existence of unsophisticated small businesses employing immigrant workers and, importantly, a skilled and aggressive plaintiffs’ bar that are knowledgeable in FLSA matters and eager to file suit.

South Beach, Miami
Copyright: sborisov / 123RF Stock Photo

Of the 8,960 FLSA actions filed in 2015, almost 1300 were filed in the Southern District of Florida alone; the Southern District of New York, with 947 suits, was a close second.  (There is a knowledgeable and aggressive FLSA plaintiffs’ bar there as well).

The simple fact is that FLSA suits have doubled in the last ten years.  In 2005, there were 4021 and that number doubled in 2015.  In that same time frame, the number of cases filed in the Southern District of Florida ranged between 1200-1400.  Notwithstanding this national uptick, South Florida still holds a sizable lead.

One commentator suggests that there is a “higher percentage of unscrupulous employers in South Florida.”  Perhaps a workforce with a large percentage of immigrants may be more vulnerable to workplace underpayment, as employers may see employees who are afraid of complaining to authorities.

The Takeaway

I do not believe, on balance, that for small businesses, it is greed that motivates them. Rather, I believe it is just failing to get necessary legal advice when implementing employee policies.  The FLSA is complex and nuanced.  Full compliance and corrective actions are best when done under counsel’s direction.  Even with good policies, employers could have lower level supervisors who do not understand the law and do or do not do, things that bind the company.

I believe strongly that the best course of action is a proactive one.  A complete audit of all compensation practices, e.g. exemptions, working time, etc.  Fix what is broken and move on.

Although there is an active plaintiffs bar in South Florida, they are all over (with many of them pooling resources).  Notwithstanding that, if there is nothing for them to “find” then it does not matter and internal audits accomplish that goal.

Then you can sit in the Florida sun…