Your employees are not out there to hurt you, however, when you wrong them they may also feel obliged to take action against you as well. This is what will eventually lead to lawsuits. This is the reason why one should read and understand the employment laws. This will give them an understanding of the do’s and don’ts and thus avoid bad blood with their employees. Some of the most common legal complaints are hour and wage lawsuits. They are often filled by those employees who feel they have been paid and treated unfairly by their employer. However, there are a number of ways that an employer can lower the effects of hour and wage lawsuits.

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Be very clear about worker duties

There are many employers who make the mistake of classifying employees as exempt and thus denying them the overtime pay. This later on turn to become a very costly affair to them. The best way for one to classify is by first knowing what their employees do. This goes beyond the job descriptions in their employment papers. It means one fully understands their actual duties in each and every day that goes and classifying them as either exempt or non-exempt. The law has provided that every employee is entitled to overtime pay and it is thus the responsibility of the employer to prove otherwise.

Keep detailed and accurate records

As an employer, one should ensure that they keep records on addresses, names, daily and weekly earnings of their employers. They should also not forget extraordinary additions as well as deductions and overtime pay for up to three years for all hourly employees. The rest of the information required may be obtained from the payroll records. If you fail to keep these records, then an employee can sue for virtually any amount of back pay. They will claim unpaid hours that they have worked and you will have nothing to prove otherwise.

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Make sure to pay wages when due

Issues of cash-flow, payroll taxes, social security and with holdings can make payroll a challenge for employers to deal with. Due to this fact, there are lot of things that a lawyer can decide to go after. If you are doing your own payroll or have someone else such as a book keeper do it, there could be that temptation to withhold payroll taxes. Don’t fall for it since your employees may not be asking for it but could be angry and go for litigation.

Avoid using comp time to pay for overtime

The private employers cannot in any way give time off in the future as a way of exchanging for overtime which they have worked now. Even if employees agree to it, as an employer you are still violating the employment law. Keep it simple by giving your employees what they are due each and every day.

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