Confusing paystubs? Brace for a class-action lawsuit — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Confusing paystubs? Brace for a class-action lawsuit

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Employees may not always understand their paystubs, especially when they work for different pay rates some of the time or when deductions are taken without clear explanations. The confusion may even prompt employees to band together and sue.

Recent case: Fernando Michelon was part of a crew of construction workers and manual laborers. He and the others were sometimes paid in cash and sometimes by check. Other employees who did not speak English often approached Michelon, asking him to explain their paystubs. He couldn’t, and had an especially hard time figuring out certain deductions that sometimes appeared.

The workers sued, suspecting 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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