Employer Defense Attorney for Wage And Hour Lawsuits

In California, wage and hour disputes often involve claims under the Private Attorneys General Act (PAGA), which allows employees to sue on behalf of themselves and others for labor code violations. Below is a comprehensive look at common wage and hour disputes, including PAGA claims, and how a CA Employer Defense Attorney for Wage and Hour Claims can help defend employers in these matters.

Unpaid Overtime

Unpaid overtime is money an employee earned by working more than 40 hours in a week that their employer didn’t pay. Employees may claim they were not paid for overtime hours worked beyond 40 in a workweek, or beyond 8 hours in a day as required by California labor laws. For example, a retail worker might allege that they worked 10-hour shifts but were only paid their regular rate. This is a frequent cause of disputes and can lead to significant financial penalties under PAGA.

How an Attorney Can Help: A CA Employer Defense Attorney for Wage and Hour Claims can assist by reviewing payroll records and timekeeping practices to determine if employees were properly categorized as exempt or non-exempt from overtime. They may identify inaccuracies in the employee’s calculations or show that no overtime was owed. If needed, they can resolve disputes through mediation or litigation.

Misclassification of Employees

Misclassification occurs when an employer treats a worker who is an employee under the FLSA as an independent contractor. Misclassification of workers as independent contractors or exempt employees is another common issue. Exempt employee misclassification is the practice of treating non-exempt workers as exempt workers in order to deny an employee his or her overtime rights. Misclassified workers may be unlawfully denied overtime, meal breaks, and other benefits. This can result in systemic violations, making it a frequent basis for PAGA claims. For instance, tech workers classified as independent contractors may sue for employee status to obtain overtime and benefits.

How an Attorney Can Help: A CA Employer Defense Attorney for Wage and Hour Claims can defend against misclassification claims by reviewing employment agreements and work conditions. They can argue the workers were properly classified or advise employers on reclassification strategies to avoid future disputes.

Failure to Pay Minimum Wage

Minimum wage violations occur when an employer fails to pay you the minimum wage rate required by law. Paying employees below California’s minimum wage, sometimes due to unlawful tip pooling or other wage practices, frequently leads to wage and hour disputes. Most importantly, many employers are unaware that cities like Los Angeles have a higher minimum wage than the California state minimum. Under PAGA, workers can recover penalties if their wages fall below legal requirements. When an employer does not pay the employee at least the minimum wage, the employee may be able to recover all of the unpaid sums, plus a penalty of liquidated damages.

How an Attorney Can Help: A CA Employer Defense Attorney for Wage and Hour Claims can investigate compliance with minimum wage laws, including the distribution of tips. If the employer followed lawful tip pooling policies, the attorney can defend against claims. They can also help restructure wage practices to avoid future risks.

Off-the-Clock Work

California wage and hour laws forbid working “off-the-clock”, defined as doing a job for a company with their knowledge but without financial compensation. Working off-the-clock covers work activities done outside official shifts (before or after official working hours), without any compensation. Working off the clock is a form of wage theft. Employees may allege they were required to work off-the-clock without compensation. For example, a warehouse employee might claim they were not paid for tasks completed after their shifts ended. This violation of labor laws can lead to PAGA claims.

How an Attorney Can Help: A CA Employer Defense Attorney for Wage and Hour Claims can analyze timekeeping records to show that all work hours were compensated or challenge unfounded claims. They can also guide employers on improving workplace policies to ensure off-the-clock work is minimized.

Meal and Rest Break Violations

California law requires that employees receive 30-minute meal breaks and 10-minute rest breaks. You cannot employ someone for a work period of more than five hours without providing an unpaid, off-duty lunch break of at least 30 minutes. If an employer fails to provide employees with the required lunch break or rest break, the employee is entitled to one hour of of wage per missed break. The maximum penalty for missed meal breaks and missed rest breaks is two hours of pay per day, no matter how many meal or rest breaks were missed in the day. Failure to provide these breaks often leads to individual claims, class actions, and PAGA claims. For instance, a delivery driver may claim they were denied proper meal breaks during their shifts.

Federal law does not require lunch breaks. However, when employers do offer short breaks (usually lasting about 5 to 20 minutes), federal law considers the breaks as compensable work hours that would be included in the sum of hours worked during the workweek and considered in determining if overtime was worked.

How an Attorney Can Help: A CA Employer Defense Attorney for Wage and Hour Claims can review break policies and records to demonstrate compliance or show that employees voluntarily waived their breaks. They can assist employers in defending against PAGA claims by proving that break practices were followed or recommend adjustments to company policies.

Unpaid Wages and Wage Theft

Unpaid wages or wage theft refers to any compensation that an employee has rightfully earned but hasn’t received from their employer. Wage disputes also arise when employees claim they were not paid agreed-upon wages or commissions. These violations can take many forms, including unpaid overtime, minimum wage violations, and misclassification of employees. If an employer fails to pay wages or provide required benefits, employees may file a wage claim with the California Labor Commissioner or pursue a lawsuit.

How an Attorney Can Help: A CA Employer Defense Attorney for Wage and Hour Claims can review employment contracts and commission agreements to verify whether commissions or wages were properly paid. They can argue the employee did not meet the conditions for earning the commissions or help settle disputes amicably.

Improper Payroll Deductions

An employer can lawfully withhold amounts from an employee’s wages only: (1) when required or empowered to do so by state or federal law, or (2) when a deduction is expressly authorized in writing by the employee to cover insurance premiums, benefit plan contributions or other deductions not amounting to a rebate on the employee’s wages, or (3) when a deduction to cover health, welfare, or pension contributions is expressly authorized by a wage or collective bargaining agreement. Labor Code Sections 221 and 224.

Employers sometimes face claims for making unlawful deductions from employee paychecks, such as for damaged equipment, which may result in wages falling below the minimum wage. This is another frequent issue under PAGA claims.

How an Attorney Can Help: A CA Employer Defense Attorney for Wage and Hour Claims can review the legality of payroll deductions and defend against improper deduction claims by showing they were authorized or permitted under labor laws. They can help employers correct any errors and ensure future compliance.

Failure to Pay Final Wages

California law mandates that employees must receive their final wages within 72 hours upon resignation or termination. Failure to do so can result in penalties, and PAGA claims can arise from systemic violations of this rule.

How an Attorney Can Help: A CA Employer Defense Attorney for Wage and Hour Claims can defend employers against claims for unpaid final wages by demonstrating that delays were due to legitimate disputes or that final payments were made on time. They can also help implement systems to ensure prompt final wage payments to avoid future penalties.

PAGA Claims

PAGA claims allow employees to act as “private attorneys general,” suing for widespread labor code violations. The Labor Code Private Attorneys General Act (PAGA) authorizes aggrieved employees to file lawsuits to recover civil penalties on behalf of the State of California for Labor Code violations.  These claims can involve various issues like unpaid overtime, failure to provide breaks, or improper payroll practices. PAGA is especially powerful because it allows employees to file claims on behalf of large groups, significantly raising the stakes for employers. PAGA lawsuits are a “representative action” rather than a class action and, therefore, the aggrieved employee does not have to satisfy class action requirements.

How an Attorney Can Help: A CA Employer Defense Attorney for Wage and Hour Claims can challenge the validity of PAGA claims, seek to limit their scope, and negotiate settlements when appropriate. The attorney can also work with employers to proactively address compliance issues, reducing the likelihood of future PAGA claims.