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Confusing paystubs? Brace for a class-action

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in Compensation and Benefits,Human Resources

How understandable are your employee paystubs? Do you get repeated questions about the same line items?

As this case shows, inconsistent payment methods and ambiguous deduction rules may spark employees to band together and sue. 

Recent case: Fernando Michelon was part of a crew of New Jersey construction workers. He and the other employees were sometimes paid by check and sometimes with cash. Other employees who didn’t speak English asked Michelon to explain their paystubs. He couldn’t, and had an especially hard time figuring out certain deductions that sometimes appeared.

The workers sued, suspecting these inconsistencies meant they weren’t being properly paid for overtime work. The court allowed the case to proceed as a class-action. (Michelon, et al., v. FM Home Improvement, et al., No. 2:09-4646, DC NJ, 2010)

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