As a small business owner, are you 100 percent sure you\u2019re paying employees correctly? Are you tracking their hours accurately? Are those you\u2019ve classified as exempt really doing the work that qualifies them for it?
\nIf not, take a sharp eye to your payment system very soon.
\nIn the last few years, numerous small businesses have been hit by lawsuits citing them for underpaying or misclassifying employees, failure to pay required wages, and sufficient overtime.
\nAnd the smaller the company, the higher the risk.
\nAlso, the threat to unprepared employers will increase early next year when a rule proposed by the U.S. Department of Labor takes effect. In its current form, the law would make an estimated one million more workers eligible for overtime pay.
\nAny vulnerabilities in a business\u2019 payment system are red meat for plaintiff lawyers who appear to be getting more successful in their pursuits. They won 79 percent of 273 wage-and-hour certification decisions in 2018, an increase of six percent over the previous year.
\nCompanies also absorbed a decrease of 11 percent in their odds of defeating cases with successful decertification motions.
\nEven more foreboding is the lone discontented employee who could hire a plaintiff attorney who then could parlay the case into a class-action lawsuit that would be very expensive for any company to fight.
\nAccording to the Society for Human Resource Management, wage and hour disputes are cash cows for plaintiff attorneys: Their fees are easier to obtain than in other forms of commercial litigation.
\nTo protect your business–and ultimately you and your family–make sure that all your workers (contractors, staff, overtime-exempt, and non-exempt) are classified correctly, and that they are being paid according to federal and state laws.
\nAlso, seriously consider proposing an arbitration agreement with your employees that includes a class-action waiver.<\/p>\n","protected":false},"excerpt":{"rendered":"
As a small business owner, are you 100 percent sure you\u2019re paying employees correctly? Are you tracking their hours accurately? Are those you\u2019ve classified as exempt really doing the work that qualifies them for it? If not, take a sharp eye to your payment system very soon. In the last few years, numerous small businesses […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29,32],"tags":[],"class_list":["post-1154","post","type-post","status-publish","format-standard","hentry","category-business","category-general"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/posts\/1154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/comments?post=1154"}],"version-history":[{"count":1,"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/posts\/1154\/revisions"}],"predecessor-version":[{"id":1155,"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/posts\/1154\/revisions\/1155"}],"wp:attachment":[{"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/media?parent=1154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/categories?post=1154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/tags?post=1154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}