By Attorney Lei Jiang, Lei Jiang LLC.
Take it seriously from day one. Under the Fair Labor Standards Act, an employee who was not paid overtime can sue for the unpaid wages, an equal amount in liquidated damages — effectively double — plus attorney’s fees. And one claim can turn into a collective action covering every employee in the same job.
The math is what surprises most employers. Overtime is one and a half times the regular rate for hours over 40 in a week. If the violation was willful, the employee can reach back three years instead of two. Each worker in the same role must opt in to join a collective action, but once the court allows notice to go out, others usually follow.
Three mistakes make it worse. First, destroying or “cleaning up” time records — keep everything. Second, firing or punishing the employee who complained — retaliation is a separate claim. Third, assuming the worker was exempt or an independent contractor — misclassification is the most common trigger, and job titles do not decide it; actual duties do.
The good news: liquidated damages can be reduced or avoided if you prove you acted in good faith and had reasonable grounds to believe your pay practices complied with the law. That is why the first call should be to a lawyer, before you answer the employee, change any policy, or talk to other workers about the claim. A quick pay-practices review now — how hours are tracked, who is classified as exempt, and how off-the-clock work is handled — can keep the next claim from ever being filed.
Act fast: preserve the records, say nothing that could look like retaliation, and get advice before the claim grows from one employee into a collective action.
Questions? Contact us at info@leijianglaw.com or (440) 835-2271, or book a free 15-minute call: https://calendly.com/leijianglaw-info/15-minute-consultation
This article is for general information only and is not legal advice.