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Is paying a daily wage risky?

by on
in Human Resources

Q. In our industry, there is a historical practice to pay field workers a daily wage, which compensates them for all hours worked. Now we understand that class actions are being used in the wage-and-hour area to fight such practices. Is this practice a good idea in light of class-action suits?

A.
You are taking a risk, because your daily-wage rate might not properly compensate field workers if they are eligible for overtime under either state or federal laws. You need to have an experienced wage-and-hour lawyer advise you about this. Problems in this area can be expensive to fix, but even more expensive to ignore.

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