Have you been sued by an employee or a former employee who claims that he was not paid correctly? The federal and state wage and hour laws are complex, tripping up employers both big and small. Even if you tried to do everything “by the book," that will not protect you if you did not pay your employees correctly. And even a single mistake in how you handle your payroll or how you keep records can cost you and your company tens or hundreds of thousands of dollars. 

       But do not despair! The lawyers of STEIN & NIEPORENT LLP can assist you. We have been handling cases of this nature since 2008, and because we handle these cases on both the employee side and the employer side, we understand the nuances of these laws and know how plaintiffs’ lawyers approach these cases.

Common issues that trip employers up include:

• Failing to pay overtime to salaried employees. Unless an employee falls into a few narrow categories, he or she is entitled to overtime pay under state and federal law, even if he or she has a title such as “manager.”  Don’t assume an employee is exempt!
  
  
• Failing to pay the correct overtime rate. Employers can’t just pay time-and-a-half the minimum wage and assume that they are paying enough. You have to know how to compute the employee’s “regular rate” and pay time-and-a-half that amount.
  
  
• Failing to pay extra pay to workers who work more than ten hour shifts. Many such employees are entitled to what’s called the “spread of hours" premium.
  
  
• Failing to pay the ever-increasing minimum wage.  That rate is now $15.00 per hour for most employees in the New York City area, and $12.00 per hour in New Jersey. You can pay some employees less if they receive tips, but only if you followed strict rules.
  
  
• Failing to keep proper records. The law imposes strict recordkeeping requirements regarding employee hours and pay. Not only can you be penalized if you don’t have such records, but you will have a hard time defending yourself in a lawsuit brought by an employee. If the employee says he worked 10 hours per day, and did not take lunch, how will you disprove that?
  
  
• Failing to credit an employee with all hours worked. Just because you allow employees a lunch break does not mean that they take it. And if they work through it, you have to pay them for it. And short breaks, such as coffee breaks, have to be paid even if employees do take them. And even if you did not authorize overtime, you have to pay it if the employee works it.
  
  
• Punishing an employee who complains about not receiving overtime pay or the minimum wage. Taking such action against an employee might be deemed illegal retaliation, and can be very costly, including subjecting you to punitive damages.
  
  
• Thinking that incorporating will protect you. It won’t. The wage and hour laws provide for individual liability for employers, even if they have established a corporation to shield them. That means that shutting down a business after it’s sued will not help you.
  
  
• Making deductions from an employee’s pay, even for breakage. You have to pay full wages earned.
  
  
• Relying on “standard practice" in your industry. There are some industries where most employers are making the same mistakes! That is not a defense. Ignorance of the law is not an excuse.
  
  
• Did you realize that undocumented workers have virtually the same rights as any other employee with respect to wages? Therefore, they are entitled to receive overtime pay, the minimum wage, and the “spread of hours” premium. 
  
  

Running a business is hard even at the best of times. We know, because we are business owners too. And in these times, it can be an almost insurmountable struggle. If you are unfamiliar with the law, you risk significant personal and business liability. STEIN & NIEPORENT LLP can help to make your already difficult job that much easier. We can represent you if you have been sued, and we can teach employers how to comply with the laws to avoid being sued. Please contact us for a free consultation, and we can discuss how we can assist you.