Understanding Pay Laws
There are numerous federal and state laws that dictate how and when an employer must pay and employee. These laws are complex and often extremely strict on an employer who fails to pay employees accordingly. Additionally, the penalties for not following pay laws are often very harsh on employers. Claims for unpaid wages can be costly. Thus, it is important to properly understand wage laws. Our business and employment law firm can help you business avoid costly litigation.
The Fair Labor Standards Act of 1938 (“FLSA”) dictates which employees may be paid salary and which employees must be paid hourly. An employer and employee cannot contract around these rights. An employer that incorrectly pays employees a salary, instead of hourly, has exposed itself to a potentially costly lawsuit.
If an employee brings a successful claim against an employer for unpaid wages, the employer may be liable for all unpaid overtime worked during the last three years. Then, the employer may have to double those damages and pay attorney fees. Additionally, the FLSA allows an employee to bring a claim on behalf of all similarly situated employees. Such a claim could devastate your company. Thus, it is important that your business properly understands wage laws.
Not only can our business and employment law firm defend you should such a claim arise, but our law firm can audit your company’s employment policies to assist you in avoiding such claims all together.