Labor and employment class actions common and costly, but signs of relief emerge

The 2025 Carlton Fields Class Action Survey reveals that labor and employment class actions remain the most common type of class action and account for the largest share of defense spending on class actions. However, the survey also found that the number of these class actions is declining. While most companies still expect labor and employment class actions to remain the most frequently filed type, there’s growing uncertainty about whether that will continue.

Labor and employment class actions remain most prevalent

The number of labor and employment class actions has risen steadily over the past five years, with major increases in 2022 and 2023 following the pandemic. A strong economy emboldened workers to file and join class actions alleging violations of wage and hour laws, among other claims. As a result, labor and employment class actions grew from approximately a quarter of all class actions in 2020 to nearly half in 2023.

The percentage of surveyed companies facing labor and employment class actions also increased during this period. Respondents reported allocating more defense spending to these actions than to any other category, a trend that continued through 2024. Labor and employment class actions remained the most common and the most resource-intensive type of class action for companies.

Signs of relief for employers appear