Nothing—not even a sexual harassment suit or EEOC investigation—will consume as much of your time as a class-action overtime lawsuit.
The reason: Lawyers get visions of huge paydays when they imagine magnifying a small wage-and-hour claim into a class-action suit that covers all similarly situated employees.
Your best bet: Thoroughly review your pay practices to make sure you aren’t making any wage-and-hour mistakes. Do that before the litigation hits.
Recent case: Sales reps for a home construction company sued, alleging overtime underpayment of five hours per week. After months of litigation, including a trip to the 4th Circuit Court of Appeals, the case has now been remanded to state court on a technicality.
Very likely the company has paid more in legal fees than it owes in overtime. (Bartnikowski, et al v. NVR, No. 09-1063, 4th Cir., 2009)
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Prepare to justify any adverse employment action affecting members of the military
- Cut legal risk during layoff
- Train employees to avoid pestering workers who file lawsuits or in-house complaints
- Target makes a stand in the battle of the bathrooms