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One law firm has filed suits against at least 15 CT restaurants regarding wages. Six of them are class-action lawsuits representing numerous plaintiffs and could have far-reaching implications.
Employment Practices Liability Insurance (EPLI) is the coverage your business needs to defend itself against employment related lawsuits, even if it turns out that you are on the right side of the law. It is not included on your basic policy; it is an option that must be added.
The lawsuits are based on complexities and inconsistencies between CT regulations and the Dept. of Labor guidelines about “tip-credit” and minimum wage rules. The targeted businesses/defendants may have misunderstood or incorrectly applied the rules and are now facing legal action which will likely have significant defense costs even if they did nothing wrong. Insurance would cover defense costs in addition to any monetary verdict against them.

More at https://yankeeinstitute.org/2019/08/20/the-fitch-files-fifteen-lawsuits-filed-against-connecticut-restaurants-by-small-legal-firm-spurred-wage-tip-fight-at-capitol/

Chips rest 08262019 300x225 - CT Restaurants Targeted for Employment Lawsuits

Chips Family Restaurant is facing a class action lawsuit by former employees over the wage tip credit