Unpaid Overtime Disputes are a Consistent Risk for California Employers

Unpaid Overtime Disputes area a Consistent Risk - CA Employers

Unpaid overtime disputes are a consistent risk for California employers.  Employers are the primary target of many plaintiffs attorneys across the state who are constantly advertising for disgruntled workers and new employers to target.  Several recent cases are based upon former employees who left under apparently good terms, only to file a lawsuit in the months following their departure.  Many employers and business owners are shocked to learn this is even possible, and even more surprised by the position of area courts who tend to side with the employee.

Recent unpaid overtime disputes and litigation case examples include employees who claim “working nights and weekends was an expectation,” or “it was not possible to do the job without working outside of normal hours.”  They subpoena email records (or provide copies they’ve forwarded to themselves) and cell phone records demonstrating voice mail access on evenings and weekends.  Employers who provide signed time sheets believe they have an open and shut case, only to lose when the case comes to trial.  Lack of awareness is one reason unpaid overtime disputes are a consistent risk for California employers.

The experienced employer defense attorneys at the Watkins Firm bring more than four decades of experience and a proven track record of success to our client’s side of the equation.  We work to help our clients to update all internal policies and procedures, employee handbooks, as well as employment agreements and management practices to come into compliance with California overtime laws.  We provide guidance on re-design of time cards, and the process for reporting hours, as well as insight on how to restrict access and require advanced written authorization for overtime from managing supervisors.

It is possible to tighten your internal documents and practices to reduce or outright eliminate your exposure to potential disputes and litigation.  Employers face recent extensive changes in many areas of employment related laws, and the failure to address these issues can result in expensive unpaid overtime litigation.

Dan Watkins Founding Partner of the Watkins FirmPro-tip: “The state of California has hired or licensed a whole bunch of lawyers out there to be bounty hunters, and instead of funding any regulation and enforcement, they just said, we can say whatever we want. And they’ll be a lawyer out there who wants to get attorney’s fees out of an employer and be a bounty hunter to try to catch you at the tiniest mistakes and make you pay dearly for it.

Every California employer needs to have a good lawyer who helps you stay up to speed and take those little technical matters seriously, because it doesn’t cost much to be in compliance. It really doesn’t. But it costs so much to get caught. Usually you don’t get caught for a few months and before you know it, you could literally lose hundreds of thousands of dollars for an accounting error or the way you put your paychecks out or your refusal or failure to put up a little sign in your break room. All those little things. There’s some lawyer out there – Mr. Bounty Hunter – looking for you to try to collect five, 10, $15,000 in fees for tiny mistakes.

That’s how you take a mistake on the way somebody drafted someone’s paycheck to the tune of, let’s say $15 a week. That puts you in a class action that costs you $300,000, $400,000 because of an accounting error, and because they went into a PAGA class action. Now, had you had certain types of agreements in place, even some kinds of arbitration agreements, we could help you to have them in place and prevent all of that. 

That’s really where we’re at now on these laws. You could have cut this off also, had you had one of our old, experienced lawyer for employers you could talk to about your procedures or maybe an outside accounting service to review it or a CPA or our HR person, someone you can call if there’s any questions. Or your staff can call, then you won’t have this problem. And if you do, then we can help you shut it down right away.” – Dan Watkins, Founding Partner

Unpaid overtime disputes are a consistent risk for California employers. Winvite you to review our podcast Episode 39 – What Keeps Employers Up at Night as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today and learn about the consistent actions that are required to protect your company, and the policies and procedures that must underpin them.  Ensure compliance with all employment law changes on a federal, state and local level.