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No pay? No doubt you will face a lawsuit!

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in Compensation and Benefits,Human Resources

Never skip a payday. That’s just asking to be sued.

Recent case: Jesse and other employers put in long hours at video game developer Factor 5. They worked more than 40 hours per week even when the company ran into financial trouble and stopped making payroll. Then, after almost two months of no pay and no health insurance, they learned that the company had been sold. Now they weren’t just unpaid; they were unemployed.

They sued the new and former owners, alleging minimum wage and overtime violations, and a long list of other broken laws. They sought to represent all employees who had worked without pay at the same time.

The court ordered notice sent to the last known address for all former employees, informing them that they could join the litigation. (Helton, et al., v. Factor 5, et al., No. C-10-04927, ND CA, 2012)

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