Fifth Circuit Holds Insurer Not Required to Fund Wage and Hour Arbitrations Due to Lack of Timely Notice
A divided Fifth Circuit Court of Appeals has affirmed an Eastern District of Texas order stating an insurance company was not obligated to pay costs related to a staffing agency’s wage and hour arbitrations with numerous workers because the agency failed to provide the insurer with timely notice of the first claim. In ADI Worldlink, L.L.C. v. RSUI Indemnity Company, No. 17-41050 (5th Cir., August 2, 2019), a staffing company, Worldlink, procured a one-year directors and officers liability insurance policy from an insurer, RSUI, in 2014. Worldlink subsequently renewed the policy on an annual basis for one-year periods.