GITNUX MARKETDATA REPORT 2024

Misclassification Lawsuit Settlement Amount Statistics

The average settlement amount for misclassification lawsuits is $50,000.

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"Misclassified employees often lose out on an average of $2,500 in benefits per year."

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"States with the highest incidences of misclassification lawsuits include California, New York, and Texas."

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"Small businesses are disproportionately affected, representing 55% of defended misclassification lawsuits."

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"Remote and freelance workers are most commonly misclassified, comprising about 60% of such cases."

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"Legal precedents in misclassification lawsuits have been significantly shaped by rulings in the California Supreme Court."

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"Approximately 30% of workforce lawsuits in the U.S. involve some form of misclassification."

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Statistic 7

"On average, it takes between 12-24 months for a misclassification lawsuit to be resolved."

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Statistic 8

"70% of companies with more than 100 employees face at least one misclassification audit every three years."

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"The median settlement amount in employment misclassification lawsuits can range between $5,000 to $30,000 per plaintiff."

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Statistic 10

"The average legal cost to defend a misclassification lawsuit is around $100,000."

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Statistic 11

"Employment misclassification cases have seen a 45% increase over the past decade."

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Statistic 12

"Over 60% of companies misclassifying workers as independent contractors end up settling out of court."

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"Companies that lose misclassification lawsuits often have to pay back wages and fines amounting to $10,000 to $50,000 per worker."

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Statistic 14

"Over 50% of U.S. states have increased their enforcement efforts related to worker misclassification in the last five years."

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"Misclassification lawsuit settlements often result in companies reclassifying workers as employees, affecting an average of 20-50 workers per case."

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Statistic 16

"The U.S. Department of Labor recovered over $200 million in back wages from misclassification cases in 2020."

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Statistic 17

"Misclassification lawsuits increased by 15% in California following the passage of Assembly Bill 5 (AB-5)."

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Statistic 18

"Nearly 80% of gig economy companies have faced some form of misclassification lawsuit."

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Statistic 19

"Class-action misclassification settlements have resulted in companies paying upwards of $100 million."

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Statistic 20

"Misclassification settlements often also include changes to company policies to prevent future violations."

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