Recently, I received a panicked call from a small business owner who worried that they would be sued for overtime or possible wage and hour claims as they were late in installing a time clock method, but had time sheets that everyone submitted regularly. The employee in particular also received several complaints, and their performance routinely came in sub-par. What does an Employer do when there is a possibility of a wage claim by an employee?

Many employers are not aware that if there is a good faith dispute as to wages, they can always settle privately with the employee.

It is always best to do settle the wage dispute promptly well before separation in order to avoid possible litigation. Mind you, there has to be a good faith dispute in regards to the wages. A wilful failure to pay could lead to waiting time penalties. Not being aware of wage orders, or payment schedules is not a defense, and courts construe ignorance of the law as wilful.

Always consult with an attorney when there is a possible wage and hour issue that you are concerned about.

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