Wage-and-hour rules
Employees file wage-and-hour lawsuits when they believe they are not being fairly compensated for their time. To avoid such lawsuits, you must first classify the employee correctly upon hiring, and reclassify employees any time their title or responsibilities change.
Employees are classified as either exempt or non-exempt from wage-hour rules. Exempt employees are paid a set salary regardless of the hours worked, and are typically those in executive, professional, and administrative positions. Employees who are paid by the hour are considered non-exempt and they must receive at least the minimum wage and overtime pay. It is very important to develop and observe policies, procedures and practices that do not allow non-exempt employees to work off the clock.
Discrimination and harassment
Employers are expected to keep the workplace free of discrimination and harassment. There is a significant body of law that prohibits discrimination or harassment in the workplace against individuals and groups, including discrimination by:
- Race
- National origin
- Age
- Disability
- Gender
- Religion
In addition, laws have evolved to protect employees against pregnancy discrimination, and in some localities against sexual orientation discrimination.
To avoid or win a discrimination lawsuit, it is essential that you create and observe policies and practices that prohibit discrimination against employees in all aspects of their employment, including:
- Hiring
- Compensating
- Health insurance
- Fringe benefits
- Promoting
- Training
- Assigning projects
- Firing
- Downsizing
Even policies and practices that seem neutral but would, for example, impact older workers more than younger workers, can constitute discrimination.
The best defense is a good offense
Your best protection against an employee lawsuit is to create an open, respectful, and fair workplace, and make sure that employees know how and to whom they can raise a complaint. It is essential that you clearly and carefully document nearly everything, including:
• That your company is an "at-will" employer, meaning that either the employer or an employee may terminate the employee's employment at any time and for any or no reason, with or without cause or prior notice. Make sure this is clear to all job applicants and new hires
• Policies, procedures, and practices prohibiting unlawful, discriminatory, and inappropriate activities
• Training on policies, procedures, and unacceptable workplace behaviors—and have each employee sign and date the policy to show they read and understand it
Contact us today
To find out how the attorneys at Gibbons, Neuman, Bello, Segall, Allen & Halloran, P.A. can help you defend an employee lawsuit, contact the firm today.