Responding to a worker’s wage and hour claim

Even successful companies sometimes face litigation brought by workers. Companies that do their best to adhere to all employment statutes and uphold their contracts with workers may still face employee dissatisfaction.

In some cases, hourly workers might insist that they did not receive the wages they deserve. They might claim that the company failed to pay them for time worked or withheld overtime wages. Both current and former employees could claim in civil court to have experienced wage theft or other pay violations. Wage and hour lawsuits can cost companies thousands and damage their reputations.

How can business leaders mitigate the fallout of a pending wage and hour lawsuit brought by a current or former employee?

Review employment records

Under the Fair Labor Standards Act (FLSA), employers generally have an obligation to retain relevant workplace documentation for at least three years. Therefore, there should be time clock records and a breakdown of exactly what the company paid the worker available for analysis.

In many cases, companies can quickly validate that they have fulfilled their obligations by paying the workers for the time that they were on the clock. They may be able to settle the matter outside of court or convince a judge to dismiss the case.

Certain complaints might relate to a worker failing to understand de minimis provisions that allow for minor off-the-clock job tasks. They may also be unfamiliar with the legality of time clock rounding practices, which allow companies to pay workers in increments of time as large as 15 minutes.

Reviewing allegations made by a worker and a company’s records of their time worked with a skilled legal team can provide the basis for an effective defense strategy. Business leaders preparing for employment-related litigation need insight into the law and support as they prepare to respond in civil court, and that’s okay.