Five Things To Know on How to Win a Wage Claim in California
Employers must prepare defenses for employee’s wage claims if employers are to succeed. Here are five effective ways to defend against a California Labor Commissioner claim:
1. Understand the Claim Made by the Employee
An employer will receive a Notice of Claim and Conference in writing from the Labor Commissioner’s Office. You do not have to respond to the notice, but you or your representative must appear at the conference during the date and time on the notice. During the conference, the Labor Commissioner will attempt to resolve the issue between the parties and discuss the allegations and responses.
2. Ensure that the Labor Commissioner can hear the claims alleged by the employees
The Labor Commissioner can only hear certain disputes such as:
- Demands for compensation
- Action to recover wages
- Action to recover penalties
Therefore if the employee has filed a claim about anything else, the Labor Commissioner cannot adjudicate them. Also, if an employer seeks to file a counterclaim against the employee, it must be filed in court, not with the Labor Commissioner.
If the employee has an arbitration agreement with the employer, then the employer can remove jurisdiction from the Labor Commissioner.
3. Decide If You Require Legal Representation During the Labor Commissioner Complaint Process
A lawyer is not required for any part of the Labor Commissioner process. If you choose to have legal representation, you are allowed to though. Generally, if an employer does not understand the applicable laws enough to build a defense then they should seek legal representation. If the case is not resolved in the conference and goes to a hearing, then you should seek legal representation.
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4. Understand the Strengths and Weaknesses of Your Case Before You Go Into a Settlement Conference
The Labor Commissioner will often send the matter to a settlement conference initially. This is a step to attempt to resolve the issue. It is important to prepare a defense for the conference and bring persuasive evidence. The conference will also allow employers to hear the employee’s reason for a claim and what evidence and witnesses may be relied upon. These elements will be important if the case goes to a hearing.
The Labor Commissioner’s Office will provide a list of paperwork an employer must bring to the conference. They will need:
- The DLSE’s Report of Workers’ Compensation Insurance
- City Business License
- Articles of information filed with the Secretary of State
- Documentation relevant to the employee’s claims such as employee handbooks, policies, written communication with the employee, timesheets, payroll records etc.
Employers should review the notice for the employee’s allegations so they can prepare an outline for their defense. They should study laws and precedents so they can articulately present their case to the Labor Commissioner and the employee. The more persuasive the case is, the more likely the case will settle for a small amount. Negotiation is often required during a settlement conference, so employers should know the range of how much they are prepared to settle for. An experienced employment lawyer can help negotiations and advise on settlement offers.
5. Preparing For Hearing
If there was no settlement conference, or the case did not settle at the settlement conference, then the Labor Commissioner will set a date for the hearing. Though the idea is to quickly resolve disputes, in practice, the hearings often take place a year after the settlement conference.
The hearings are held in a conference room at the Labor Commissioner’s Office. The hearing will be recorded, and all witnesses are sworn in, just like in court. Witnesses and documents can be subpoenaed as in court.
Employers should prepare the following things for the hearing:
- Direct examination questions for their witnesses
- Cross-examination questions for the employee and their witnesses
- Key exhibits in the form of documents that support your case. Three copies are necessary so all parties can refer to the evidence. Handbooks, policies, time records, and pay stubs are good examples of relevant
- Prepare witnesses that support the employer’s case. Managers, supervisors, or even the employee’s co-workers can testify.
The Labor Commissioner has a lot of discretion, so employers must be flexible as to the order in which things will be presented. The Labor Commissioner will also ask questions to get a better understanding of the situation.
Following the hearing, the Labor Commissioner will issue a written decision which will be served to all parties. Both parties have the right to appeal the decision, but otherwise, it is a binding judgement. A certified copy of the judgement is filed with the superior court.