You hire people, pay them well, provide benefits, and keep a positive working environment. What does your business get in return? Labor Board claims and Employee lawsuits.
California employers are inundated with employee lawsuits ranging from wage and hour claims alleging denial of “overtime pay,” “meal and rest breaks,” and “failure to provide “accurate pay check stubs.” Add to this allegations of “wrongful termination,” and “discrimination,” and you have the perfect storm of a nightmare employee lawsuit.
These types of lawsuits can be a substantial burden on any business and could be devastating to the small business due to the high costs of defense. In addition, Labor laws provide attorney fees to the successful employee which creates a huge risk for the employer that wants to prove they did everything correct and paid the employee. These lawsuits are so far reaching and complex that even if the employer did everything right, it could still lose. Often times the employer ends up paying to “settle” the case just to buy certainty and put an end to the ongoing costs.
What can an employer do to prevent such lawsuits? While it is nearly impossible to prevent every employee claim, the employer can maintain a system of checks and procedures to minimize the risk. This may include an audit of payroll practices and procedures as well as other actions focused on labor law compliance.
If your business is facing an employee lawsuit, or even if you just need some experienced advice about your practices and procedures, contact Southern California Labor Law Attorney Thomas F Nowland.
Thomas F Nowland
Nowland Law
949-221-0005
www.nowlandlaw.com
tom@nowlandlaw.com