North Carolina’s Wage and Hour Act (NCWHA) says that if you fail to pay workers what they’re due, they can sue for those unpaid (or late) wages, plus a penalty of double what was due. Your only defense to double damages: proof that you acted in good faith and reasonably—a tough task.
That’s why it’s vital for employers not to fall behind on wage payments and to be absolutely sure of the legality of any deductions or withholdings from an employee’s wages.
Recent case: Richard Mason worked in North Carolina under a written contract that called for a $300,000 base salary and a one-year-salary severance pay package. After being fired, Mason sued for the severance. He also said the NCWHA applied and demanded that his payment be doubled.
The court agreed Mason was owed the severance. It sent the double-damages issue to trial, where the former employer will have to prove it acted in good faith when it withheld the severance. (Mason v. ILS Technology, No. 3:04-CV-139, WD NC, 2007)
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/3344/pay-correct-timely-wages-in-nc-or-risk-double-damages "
- FLSA: Exempt vs. Nonexempt Workers
- Stop litigious employees' amateur sleuthing! Set policies to ban unauthorized recordings
- If employee has authority to hire and fire, is he automatically eligible for exempt classification?
- OSHA orders reinstatement for truck driver--plus $190,000
- Lawyer fired for appraisal sues for wrongful discharge