The city attorney flags a likely FLSA collective action over unpaid on-call time for water-plant operators. Risk management offers to wait and defend. What risk-management strategy should HR choose?
Select an answer to reveal the explanation.
Short Explanation
Waiting for a lawsuit is not a strategy — it is a calendar. If unpaid on-call is the exposure, fix the on-call rules and put real overtime in the budget now. Insurance and waivers do not make the hours stop being hours.
Full Explanation
A risk-management strategy can be operational redesign, not only insurance or legal defense. Unpaid on-call that likely violates the FLSA is controlled by restructuring the on-call system and budgeting true overtime before a collective action is filed. Waiting for counsel, buying a larger policy, or seeking waivers leaves the underlying practice in place. SPHR judgment treats the people-system change as the primary control.