California’s labor laws lean heavily in favor of employees, creating a minefield of potential risks for employers. Failure to properly pay overtime wages is one common allegation that can evolve into an arduous and expensive legal battle, especially if multiple employees become involved in a claim. Preventing overtime class actions in California requires vigilance and proactive steps by employers.
Best Practices for Preventing Overtime Class Action Lawsuits in California
Claims of employer wage and hour violations related to overtime pay can expand into potentially costly class action lawsuits when multiple current or former employees allege noncompliance with state or federal labor laws.
Plaintiff’s attorneys have plenty of incentive to encourage and pursue these lawsuits, and employers are best equipped to respond when they consult with experienced defense counsel to prevent wage and hour allegations and defend against them when they arise. This requires knowledge of the laws in place, careful crafting of policies and procedures and appropriate documentation and training.
Employers Must Know How to Pay Overtime in California
Understanding how to pay overtime in California is step one in mitigating potential claims against employers. As an employer, you should first understand the differences between employees versus contractors and exempt versus non-exempt employees, then pay these groups correctly.
In California, non-exempt employees must be paid one and one-half times their regular rate of pay for work time that exceeds eight hours in a day and/or 40 hours in a week. They also must be paid time-and-a-half for the first eight hours of a seventh consecutive day of work. If an employee works more than 12 hours per day or more than eight hours on the seventh consecutive day of work, they must be paid at a rate of twice their regular rate of pay.
Unless an employee intentionally conceals additional work hours from the employer, overtime must be paid even if policies require preauthorization and the employee fails to secure that authorization (although employers are entitled to discipline employees for working unauthorized overtime against company policies).
If an employee works through meal or rest breaks, that time must be included in the calculation of hours worked. Employers should also ensure they are correctly calculating the regular and overtime pay rates for employees to avoid potential disputes.
Policies and Procedures Are Central to Preventing Overtime Class Actions in California
To minimize the threat of overtime wage and hour class action lawsuits, employers should carefully construct and document policies and procedures in accordance with California labor laws as well as any applicable federal regulations.
Items an employer may choose to include in this documentation include if and when overtime is permitted; approval procedures; record-keeping requirements for employees, supervisors, and human resources (HR) staff and guidelines for reporting problems to leadership or HR. Employers must also ensure employees are properly notified regarding policies, meal and rest break requirements, and reporting of overtime.
Once policies are established, employee training and monitoring can reduce the risk of missteps. Encouraging open communication between employees and company leadership or HR can also help keep potential issues from evolving into disputes.
Consult with a California Wage and Hour Defense Attorney
Taking preventive action is critical to avoiding and defending class action wage and hour lawsuits. Employers who properly prepare and remain vigilant in the documentation and administration of overtime policies and procedures are less likely to face valid claims of overtime violations in California. These employers will also be better equipped to defend against allegations levied against them.
Susan A. Rodriguez is a Southern California wage and hour class action defense lawyer with more than 30 years of experience advising employers and defending them against various employment law claims. Contact the Law Offices of Susan A. Rodriguez, APC to schedule a consultation to discuss strategies for preventing overtime class actions in California or other employment law issues by calling (213) 943-1323 or completing this online contact form.
Posted by Susan A. Rodriguez, Esq.
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