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Any employment dispute can put your business at risk. Not only can a lawsuit significantly damage your reputation among customers and prospective employees, but the cost of these disputes can also significantly impact your bottom line. Because of this, it is important to take precautions that prevent employment law violations and help defend your business if a dispute arises?

Wage and hour disputes are increasingly common.

With new laws intended to protect workers and high-profile cases making headlines across the country, wage and hour disputes are especially common. In fact, over the past few decades, the number of wage and hour disputes has risen by 417%.

How can you protect your business?

While wage and hour disputes are common, taking a proactive approach can prevent future issues from occurring and to build the foundation for future defense if an employee does file a lawsuit. Ways to do this include:

  • Classify employees correctly—Many wage and hour disputes stem from employees being improperly classified as exempt from minimum wage and overtime requirements, and properly classifying your employees can prevent these issues.
  • Periodically review employee classifications—Especially as California lawmakers refine which workers are classified as employees and which are contractors, you may want to review your employees’ classifications to ensure that they still comply with the law.
  • Detailed record-keeping—If an employee sues your company for wage or hour violations, detailed documentation of their hours and pay could help you defend against this legal action.
  • Clearly outline company policies—Employees and supervisors should know your company’s overtime, pay and break policies. They should also be aware that your company prohibits off-the-clock work.

One of the best ways to protect your business is regularly reviewing and revising your policies, your employees’ adherence to these policies and your documentation. These reviews ensure that your policies reflect current employment law and that your business has the protection that it needs.