Central District of California Allows Wage and Hour Coverage Case to Move Forward
In a recent blog post, I cautioned that California insureds should question the conventional wisdom that "wage and hour" class actions simply aren't covered under Employment Practices Liability (EPL) policies. A new order from the Central District of California lends further support for this view. In Professional Security Consultants, Inc. v. United States Fire Insurance Co., Case No. CV 10-04588 SJO (SSx), Judge James Otero recently denied an EPL insurer's motion to dismiss a complaint seeking coverage for costs incurred to defend and settle an underlying wage and hour class action.