If your employer does not comply with wage and hour laws, they can potentially
end up facing a class-action lawsuit. Even minor mistakes that result
in employees not being paid properly can cost a business substantial amounts
of money. According to the annual
Workplace Class-Action Litigation Report, the value of workplace class-action settlements increased in 2017. The
top 10 employment-related settlements from last year were worth a total
of $2.72 billion. In 2016, the total value of class-action settlements
regarding wage and hour disputes was $1.75 billion.
Employee Classification Errors
When an employer misclassifies a worker, they can be sued for withholding
wages. Executive, administrative, and professional employees are exempt from
overtime pay restrictions. However, to qualify as exempt, the worker must be a salaried employee
that earns at least $23,660. Some computer-related positions and commissioned
sales jobs are also exempt from overtime regulations.
Many employers rely on independent contractors and freelancers to help
reduce their overall business expenses. However, if an hourly employee
is misclassified as an independent contractor or intern, they could lose
out on employment benefits and won’t have minimum wage or overtime
pay protections. If you and other employees you work with have wrongly
been classified as independent contractors, you might be able to file
a class-action lawsuit.
How HR Can Help Prevent Lawsuits
Human Resources has major role in making sure that an employer is adhering
to state and federal labor laws. HR workers can do the following things
to help make sure their company is compliant with the law:
- Keep accurate clock-in times and use an up-to-date record-keeping system
- Train managers and supervisors about the differences between exempt and
- Wage and hour audits should be periodically conducted to make sure all
workers have been correctly classified.
Many class-action lawsuits over wage and hour disputes are the result of
an employer keeping poor records, which is why it is crucial for HR to
make sure managers and supervisors are familiar with labor laws.
Speak to a Hollister Employment Law Attorney
At Marder Employment Law, we are committed to helping employees who have
been taken advantage of by their employers. If you think you have grounds
for a class-action lawsuit against your employer, you should immediately
consult with our legal team. We can help you build a strong legal strategy
that will allow you to recover the financial compensation you deserve.
Call (888) 796- 4010, today
schedule your free consultation with a
Hollister employment law lawyer. ollister