15th Annual Class Action Survey Contains Important Lessons for Employers

The 2026 Carlton Fields Class Action Survey, which surveys hundreds of general counsel and senior legal officers at major companies, has been released. The survey shows that labor and employment class actions remain a significant concern for employers. Overall, 91.7% of companies reported facing class actions regularly. It also offers key takeaways, including the need to comply with wage and hour laws and to carefully evaluate policies governing the use of artificial intelligence in employment decisions.

15 Years of Data Show a Growing Class Action Threat

This year marks the 15th edition of the Class Action Survey. When the survey began in 2011, companies reported spending about 10% of their litigation budgets defending class actions, totaling $2.17 billion. By 2025, class action defense accounted for 11.8% of litigation spending, reaching $4.53 billion.

Although the percentage of spending has increased modestly, total spending has more than doubled over 15 years. Recent data reinforces this trend. Class action defense spending rose by $320 million from 2024 to 2025, even as its share of overall litigation spending declined slightly from 12.5% to 11.8%.

Overall, the data shows that class actions have become more costly and complex, with increases in risk, volume, and associated defense spending.

Wage and Hour Claims Remain the Most Common

Labor and employment class actions accounted for the largest share of class actions in 2025, at 29.6%. Wage and hour claims drove that figure, representing 23.1% of all filings.

Companies continued to devote a substantial portion of their class action budgets — 26% — to labor and employment matters. However, 2025 brought some relief: spending in this category declined by more than 10 percentage points from a high of 38.9% in 2023.

A majority of companies still reported facing labor and employment class actions, though that number has declined in recent years. In 2025, 57.1% of companies said they had defended such claims within the past five years, down from 63.6% in 2024 and 79.4% in 2023.

Despite this decline, labor and employment class actions remain a persistent risk.

Warning Signs for Employers

Survey respondents were less likely in 2025 to view labor and employment claims as the primary driver of future class actions. One-quarter (25%) of respondents said those claims would lead the next wave of filings, down from 34.4% in 2024.

The percentage of respondents identifying data privacy and cybersecurity as key drivers of future class actions doubled to 25% in 2025, up from 12.5% in 2024. Because employers maintain sensitive employee data, including Social Security numbers, this trend could have significant implications.

Generative AI also emerged as an area of growing concern. Class actions related to generative AI accounted for 2.1% of matters and 3.7% of spending in 2025, and survey respondents expect that number to grow significantly. One respondent noted, “AI will be a driver for more claims,” while another warned that AI-related class actions “involve big settlements and can harm the reputation of a company.”

Employers using AI in hiring, performance evaluations or other employment decisions should monitor this evolving risk closely.

Takeaways

The 2026 Class Action Survey underscores the importance of compliance with the Fair Labor Standards Act and comparable state and local laws. The failure to comply with wage and hour laws can lead to significant class action exposure.

Employers should also review how they safeguard sensitive employee data and evaluate any current or planned use of AI in employment decisions, including hiring, terminations, promotions, and compensation decisions.

Labor and employment class actions remain a major concern, and emerging risks in data privacy and artificial intelligence may further reshape the landscape.