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
- Detailed disciplinary records show you're not biased
- Crack down on association discrimination before it lands you in court
- Don't wait for disabled to ask: Accommodation is two-way street
- Different punishments for different infractions are legit