How can we avoid wage-and-hour class action lawsuits? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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How can we avoid wage-and-hour class action lawsuits?

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Q. I keep hearing about wage-and-hour class actions, where workers claim they were not paid properly because they were misclassified as exempt, not paid for all hours or not paid the correct overtime rate. What can I do to minimize this risk?

A. There are several strategies. Conduct an audit—in concert with legal counsel to preserve confidentiality and the attorney-client privilege—to determine whether there are problems. Make sure your policies accurately reflect current law and the kind of work your employees perform. Train managers about best practices. Establish reporting mechanisms for employee concerns.

Periodically check with managers and employees to make sure there have not been violations. Fix problems as soon as you find them, and implement measures to make sure they don’t recur.

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