In wage and hour class and/or collective actions, there is often a residual portion of the damages award or settlement that cannot be distributed directly to the plaintiffs.  In those situations, counsel may recommend that the court order that the funds be designated for grants to benefit the class members indirectly or as nearly as possible in order to compensate for the harm to the class members. 

NELP's National Wage and Hour Clearinghouse is a natural designee for cy pres awards from wage and hour actions.  The Clearinghouse serves as a tool for increasing enforcement of wage and hour laws and promoting workers' rights to fair pay through the sharing of resources and strategy among wage and hour litigators, organizers, educators, and other advocates.  In addition, NELP has in the past been recognized as an appropriate cy pres designee by courts nationwide based on the generous recommendations of firms such as Outten & Golden and Shen & Associates.  NELP is a 501(c)(3) organization, and the cy pres funds would be used to expand the Clearinghouse and NELP's collaboration with and support for the community groups, worker centers, unions, and plaintiffs' attorneys working to stop wage theft and the erosion of the minimum wage floor and right to overtime pay.  Any cy pres award would be gratefully acknowledged on the Clearinghouse home page.

For more information on how to designate cy pres funds to NELP's National Wage and Hour Clearinghouse, please contact Laura Moskowitz at 510-663-5705 or lmoskowitz@nelp.org.