Employment and ERISA Lawsuits Sharply Decline
April 7, 2007
by Employment & Labor Law / Employee Benefits Group
Stinson Morrison Hecker LLP
Copyright © 2007
The number of employment discrimination cases filed in U.S. District Courts dropped by over 15 percent in fiscal year 2006, continuing a steady six-year decline, according to a March 13, 2007 report by the Administrative Office of the U.S. Courts. Still, 14,353 employment discrimination lawsuits were filed in federal court last year, most (over 90 percent) of which were filed by private parties. The number of lawsuits brought under the Employee Retirement Income Security Act (ERISA) and the number of labor cases also sharply declined. In contrast, the number of lawsuits filed under the Fair Labor Standards Act (FLSA) seeking overtime pay rose by four percent.
Discrimination – The number of employment discrimination lawsuits filed in federal court has steadily declined in each of the past six years, and has dropped by nearly a third (32 percent) since 2001.
ERISA – After increasing in three of the last four years, the number of ERISA lawsuits dropped by 12.7 percent in 2006, to 9,747. It is the first time in four years that fewer than 11,000 ERISA lawsuits were filed in federal court.
FLSA Cases – The number of wage & hour (4,207) cases filed in federal court has increased in each of the past three years, and has more than doubled since 2001. Most of the suits seek back overtime pay.
Labor Cases – Litigation brought under the Labor Management Relations Act and the Labor Management Reporting and Disclosure Act (LMRDA) declined by over 25 percent in 2006 and, along with Railway Labor Act cases, remained few in number.
Bottom Line - Increased supervisory training and the greater use of internal complaint procedures, release and settlement agreements, and mediation have contributed to the decrease in the federal employment discrimination lawsuits.
Stinson Morrison Hecker LLP is one of the country's largest law firms with more than 335 attorneys in more than 45-industry-focused areas. If you would like more information regarding this summary, please contact one of our Employment & Labor Law and Employee Benefits attorneys.
Law at Work is designed to give general information and is not intended to be a comprehensive summary or to treat exhaustively the subjects and matters covered. The information appearing herein does not constitute legal advice or opinions. Such advice and opinions are provided only upon engagement with respect to specific factual situations. Nothing contained herein shall be considered as an admission in any matter or controversy.
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