Legal departments in corporations were hit hard last year, witnessing a sharp surge in labor and employment class actions. Such cases constituted 43.4% of class action matters in 2023, reflecting an increase of almost 10 percentage points from the previous year. This is according to the newly released Carlton Fields Class Action Survey.
The rising wave of employee activism has been identified as a key driver behind this surge. Corporations are also grappling with increased challenges related to hybrid work policies. As the workforce continues to grapple with the changes post the global pandemic, issues around remote working and workspace flexibility have become intensely debated.
Furthermore, the dynamics of the work environment have also contributed to this trend. Layoffs in many industries have increased legal pressure on the corporates. Claims related to discrimination are swelling up, adding to the legal department’s woes.
Adding fuel to the fire are recent efforts towards unionization. These attempts, the likes of which have not been seen for the past four decades, are intensifying the situation for corporate legal departments.
In light of the current trend, the Carlton Fields Class Action Survey projects that 2024 is likely to pose even tougher challenges to legal departments, as the penchant for labor and employment class actions shows no signs of abating.