Employees can take legal action against businesses for an assortment of alleged issues. Workers may claim to have experienced harassment or other forms of discrimination in the workplace. They may also sue over violations of their wage rights.
If workers assert that they did not receive the wages they deserve, they might sue their employers. How can modern employers limit the risk of wage and hour lawsuits brought by current or former employees?
1. Clarify pay thoroughly
Wage and hour lawsuits are sometimes the result of unmet expectations. Workers expect to receive bonuses or incentive pay that the company does not provide. Having clear pay standards in contracts and employee handbooks can reduce the likelihood of litigation.
2. Careful record keeping
Modern timekeeping software makes it possible to track worker attendance down to a fraction of a second. Employers may want to embrace thorough and accurate payroll calculations instead of rounding wages to larger increments of time. Companies also generally need to retain details about payroll matters for at least three years to properly respond to claims of wage violations by workers.
3. Respond appropriately to initial complaints
Workers who file lawsuits often attempt to address their wage concerns with managers or human resources professionals. Properly training those who may field wage complaints to document the complaint and respond assertively is of the utmost importance.
Business leaders also need to be ready to respond promptly to wage and hour litigation. Retaining the support of a business law attorney familiar with state and federal employment regulations can help businesses minimize the risk of, and negative impacts of, wage and hour lawsuits.