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Introduction
If there is any claim that the company dreads, then that will be a wage and hour claim. In recent years, the industry has seen these kinds of events where the employees have claimed for wrong wages and high hour claims. These kinds of claims have not only cost high fees for the legal procedures but settlement as well.
Because of these kinds of events, most insurers exclude the wage and hour claims in their insurance policies. High hours and low wage claims can put the company at a backfoot. To better understand the hour and wage claims, let’s explore the type of complaints that trigger these types of complaints.
Wage And Hours Claims
The simple way to understand the wage and hour claims is that when an employee thinks that they have been unfairly paid for the work they have done for the organization. According to California Wage and Hours Laws, you can not make your employees work more than promised. Or even if you have made them overwork, you should compensate with high pay.
If both of these conditions are not fulfilled, employees can file a lawsuit against you for wage and hour claims. Want to know more? You can read more on wage and hour laws in California.
What Are The Factors That Invites Wage & Hour Claim?
While there are many factors that invite wage and hour claims, we have handpicked some of the most common factors responsible for these kinds of cases.
1. Unpaid Meals Or Rest Breaks
Every employee has the right to take lunch break times. Or can even take a rest break during their shifts. These kinds of breaks are under the right of the employees. If you make them work during lunch breaks or their shifts break, you are responsible for compensating them accordingly.
2. Compensatory Time
Compensatory time is the time off that the company has promised you for the overtime you have done. This is one of the best practices for companies who are not willing to pay overtime wages. Well, if you are an employer and have promised compensatory time. Ensure that you keep your promise.
3. Work Travel
Work-related travels are also counted as work. If you are on a business trip or a business seminar representing your company, you are working. So, if a company refuses to pay you for these kinds of events, you have the right to for wage and hour claims.
4. Minimum Wage Violation
According to California wage and hour laws, there is always a minimum wage for every work. If that minimum wage is not met, you can file a complaint against the company.
5. Under Paid Overtime
A non-exempt employee is entitled to work only 40 hours a week. If the work exceeds that hour limit, the employees are entitled to be paid overtime. Usually, the overtime pay is 1.5 times the normal pay. If the employer does not pay you for the overtime you have put in or improperly calculate the wages, you can file a wage and hour claim. Hence, it is important that you manage overtime effectively.
Understanding Over Time Rules
As you have seen that there are many factors that invite wage and hour claims, but in research made by California wage and hour laws, it has been seen that most of the expensive lawsuits have always been related to overtime pay.
Overtime rules are very simple; however, there are things that you need to know about the overtime pay.
- An employee is entitled to work only 40 hours of work every week.
- Most exempted employees do not fall under this rule—for instance, managerial posts.
- According to the Department Of Labor, the weekly minimum wage has been increased to $684. If some are getting lower than this, they are entitled to overtime pay (even managers or senior employees).
Take Away
Being an employer, you need to be aware of the thighs mentioned in the article. Here we have talked about the different kinds of scenarios where you can face wage and hour claims. And have even talked about the things to solve these kinds of problems.
You may also like: How To Implement An Online Timecard System For Business
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