Protecting your business from wage and hour lawsuits

Protecting your business from wage and hour lawsuits

On Behalf of | Sep 7, 2021 | Uncategorized

Employment disputes are something that all companies should seek to avoid where possible. Legal clashes can impact staff morale, damage your reputation among current and prospective employees and even negatively impact your profits. 

Consequently, it is beneficial to analyze methods that may prevent legal disputes and uncover any defenses in the unfortunate event that they do arise. 

What can you do to prevent wage and hour claims?

While wage and hour disputes are common, they do not always result in lawsuits. Taking proactive measures can be beneficial to both the employee and employer. Furthermore, if a company has taken every possible step to avoid disputes, it is likely to reflect favorably on them if the case does go to court. Some of the most useful measures toward preventing wage and hour claims are outlined below:

1. Classify employees correctly

When an employee has been misclassified and disqualified from minimum wage and overtime requirements, they are likely to raise a grievance. Ensuring that employees have been classified correctly can negate the risk of such legal disputes happening. 

2. Keep detailed records

Where an employee raises a dispute in relation to wages, having a detailed record of their schedule will be very helpful. This could assist you in resolving the dispute with them directly and in an amicable manner. Furthermore, it may bolster your defense if the dispute does reach the courtroom.

3. Make your company policies clear

Disagreements often arise simply because of confusion. Making company policies related to wages. benefits, leave and other entitlements clear and accessible will go some way in alleviating any misunderstandings (and lawsuits).

Being familiar with the law relating to wages and hours will protect the interests of your business. Where legal disputes do arise, it is vital to be familiar with both your legal rights and obligations. 

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