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Wage and Hour Violation Exclusion Applies to Allegations of Untimely Payments in Connection with Scheme to Underpay Employees

January 16, 2024

Via: JD Supra

A Pennsylvania federal court, applying Pennsylvania law, held that a policy’s Wage and Hour Violation exclusion applied to the entirety of underlying class actions that alleged the insured employer schemed to underpay its prevailing wage workers. Twin City Fire Ins. Co. v. Glenn O. Hawbaker, Inc., 2023 WL 8791175 (M.D. Pa. Dec. 19, 2023). Rejecting the insured’s argument that coverage should still exist for its alleged liability to class members who were not underpaid but only untimely paid, the Court concluded that all the allegations were related to claims involving Wage and Hour Violations and were thus excluded from the policy’s fiduciary liability coverage.

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