Make sure you pay what contract states — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Make sure you pay what contract states

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Indiana employers, listen up! Pay your workers what you say you will pay them, or get ready to pay a lot more. Employees can sue for unpaid wages under the Indiana Wage Payment Act (IWPA) and collect three times their unpaid wages. That can add up quickly.

Recent case: Richard Felker and several other emergency medical technicians (EMTs) and ambulance drivers sued their employer for unpaid wages. They claimed to have signed a contract that called for a wage increase and training to become intermediate EMTs. But the contract did not specifically tie the higher wage to finishing the training.

When they didn’t get the higher wage, they sued under the IWPA. The court said they were entitled to the higher wage under the contract—times three. That’s because the IWPA includes a liquidated damages clause, tripling the unpaid wages due. (Felker, et al., v. Southwestern Emergency Medical Service, No. 2:05-CV-183, SD IN, 2007)

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