5 Tips For Avoiding Wage & Hour Lawsuits

California Labor Laws Overtime - 5 Tips For Avoiding Wage & Hour Lawsuits

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Recent broadcasts from many sources including Kiplinger and the national employment law firm of Seyfarth Shaw are advising clients and workplace managers of the huge uptick in wage and hour class activity lawsuits. This dramatic growth in the sheer estimate and village size of these class activity suits provides further withhold to train managers in wage & hour issues.

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California Labor Laws Overtime

Both sources utter that wage & hour lawsuits are exponentially outpacing all other types of workplace class activity lawsuits. Social actions filed in federal court outnumbered all other types of hidden class activity suits, and hit the following states the hardest last year: California, Florida, Illinois, New Jersey, New York, Massachusetts, Minnesota, Pennsylvania, and Washington. This trend is foreseen, to continue into 2010.

Seyfarth Shaw summarizes their findings in their Sixth every year Workplace Class activity Litigation report by saying, "Increasing sophisticated class activity and Social activity litigation, combined with aggressive government enforcement, means that employers are apt to face more claims and bigger exposures in 2010."

The cost of losing these complaints and lawsuits for employers is huge. Seyforth Shaw reported that the dollar valuation of the "top 10" hidden settlements in 2009 totaled 3.8 million, up from 2.70 million in 2008.

At Ohio Employer's Law Blog, attorney John Hyman wrote a 12/09 blog that highlighted a BiIllion class activity lawsuit (as he says, "yes that's 9 zero's!") filed against At & T for their alleged misclassification of their first line managers as being "exempt." Unfortunately, it only takes one disgruntled employee to instigate a wage & hours complaint that has the inherent to become a major class activity suit against an employer.

Here are 5 tips you can implement in your assosication to avoid wage and hour complaints and lawsuits:

1). Conduct an wage & hour audit. Now is the time to become proactive, to be confident that your organization's jobs are properly classified as being either "exempt" or "non-exempt" under the Flsa and Dol's regulations. If you don't have the time to Conduct the audit yourself, hire an experienced Hr consultant or attorney to perform this analysis.

2). Identify & focus on known "problem jobs" including jobs under the executive exemption, It jobs, outside/inside sales jobs, and first line management jobs. The Flsa assessment tends to become difficult when evaluating the "threshold jobs" that are just on the border of transitioning from being "non-exempt" to "exempt." States who have more restrictive wage & hour regulations with regard to specified jobs groups can also be problematic.

3). When in doubt, hire an devotee to make the measurement as to the permissible classification status. Run the most difficult "problem jobs" by your labor attorney to make a final determination. Or....decide to conduct this conservatively and classify "problem jobs" as being non-exempt to avoid any time to come problems. Of course, many employers don't want to do this because of the overtime pay costs.

4). Bring your managers into the decision making process. Get further information from them about the job's responsibilities and duties as necessary, and use the time to educate them about why the job has to be classified one way or the other. You'll have greater "buy-in" from them once the final decision's been made because they were a part of the process.

5). Train your managers. Explicate and literal, coarse managerial beliefs such as discretionary classification of jobs based upon their whim, the differences between "salaried" and "exempt," and key elements of your compensation practices. Knowledgeable managers won't allow unauthorized overtime practices, missed lunch or regular breaks from their employees.

Experts believe that almost 70% of businesses are out of yielding with wage and hour laws. Straight through implementing these five recommended practices, you could potentially save your assosication thousands and maybe even millions of dollars in avoided complaints or lawsuits. If you reason that your company has wage & hour issues, don't wait for one of the 250 newly hired Dol agents to show up on your doorstep before you address them!

Copyright 2010 Regan Hr, Inc.

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