Wage and Hour coverage is available in all States, including California. Coverage is limited to Defense only coverage. Maximum Limits are $150,000. In general Wage and hour coverage pertains to claims filed under the Fair Labor Standards Act (FLSA) or its State equivalent.

Exposure

The three biggest exposures under the law are:

Misclassification of "non-exempt" employees as "exempt". Employees who are salaried employees may be eligible for overtime pay if they work in excess of 40 hours in a week (or 8 hours in a day depending on the state.) The rules for determining status vary by industry and by state.

Violation of mandated work rules regarding lunch periods and break periods. Some states, especially California require that workers be allowed a certain amount of time for lunch and for breaks. Companies that do not follow or who cannot document that they followed mandated procedures may be subject to back pay, fines and fees.

Failure to pay minimum wage. This is often linked to poor documentation or misclassification of people who do piece work or work on commission.

Company Guidleines:

Limits - $150K (Higher limits are available but at substantially higher attachment points and premiums)

Excluded Classes –

• Agriculture
• Cut/sew clothing manufacture
• Janitorial services
• Food processing/canning/slaughter
• Hi-tech (CA only)
• Pharmaceutical (CA only)
• Accounts with prior wage & hour claims – These will be considered with full claims details

Risks that Require Long Form Supplemental Application:        

• ANY RISK OVER 250 EMPLOYEES
• Restaurants/Bars
• Hotels/Casinos
• Hi-tech (excluded in CA)
• Retail
• Staffing/PEO
• Municipalities
• Securities Brokers/Banking/Investment Advisors
• Hospitals/Ambulance
• Pharmaceutical (excluded in CA)
• Insurance
Cost – Minimum 10% AP ($1,000).

Applications:

• Standard W&H Supplemental Application Click Here
• Long Form W&H Supplemental Application Click Here

Click here for a document that explains you long form W&H supplemental application