A coverage endorsement that may be attached to employment practices liability
insurance (EPLI) policy forms. It covers the cost of defending claims alleging
that an employer failed to pay overtime to a nonexempt employee—that is, an
employee who is not exempt from, and therefore eligible to receive, overtime
pay under the Fair Labor Standards Act (FLSA). No coverage typically applies
under these endorsements to settlements or judgments (i.e., they cover only
defense costs), and a sublimit (e.g., $100,000 to $500,000) usually applies.