What you can you do to prevent a wage lawsuit against your buisness?

There may be risk reduction techniques that could be of help, sometimes not even complicated ones.  I just heard the story of a recent claim brought by the chef of a restaurant.  He would come in to work, clock in, go to lunch but not clock out.  He would then clock out at the end of his regular shift.  Fourteen years later he is laid off and follows a suit, claiming that he worked over 8 hours a day and more than 40 hours a week and was entitles overtime for all those years.  Had the employer had someone in accounting review the time cards, the suit could have been completely avoided.

The Professional Protective Alliance wants to remind you, at a minimum, you should review your policies, procedures, and unwritten practices now and look for the following:

  • Are employees properly classified as exempt or nonexempt from minimum-wage and overtime requirements under state and federal law?
  • Are employees being properly paid for all compensable preparatory and concluding activities?
  • Are employees being properly paid for all compensable travel time?
  • Are employees receiving and taking required rest and meal periods?
  • Are employees generally being paid either straight or overtime pay, as appropriate,  for all hours worked (i.e. employees are not performing work “off-the-clock”)?
  • Are deductions from employee paychecks being made only in accordance with state law?
  • Is employee overtime pay being correctly calculated?
  • Are employees being paid all wages due upon termination of employment in accordance with state law?
  • Do your written policies and procedures conform to state and federal wage and hour laws and accurately reflect your organization’s practices in this area?

If you have any questions or concerns regarding treatment of employee payroll and compliance of state and federal regulations we recommend you contact your accountant or payroll service.

Wishing you the best,

Professional Protective Alliance

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