Employers should take proactive steps to avoid wage claim lawsuits

Wage claim lawsuits can generally be avoided by accurate bookkeeping and knowledge of the law's obligations. Ensuring that those in charge of payroll know and follow the letter of the law, periodic review by corporate counsel of payroll policies, keeping abreast of changing employment law, redrafting relevant handbook provisions, and training management in this area are all cost-effective means of reducing exposure to wage claim litigation. Because the penalties can be so harsh in this arena it is especially important to follow the old maxim - an ounce of prevention is worth a pound of cure. FSLA regulations require employers to pay employees for all hours during which the employer knew or had reason to believe work was being performed. With accurate bookkeeping and clearly communicated pay policies an employer can be more protected. Place a strong emphasis on protecting wages through voluntary compliance.