As employee lawsuits rise, employers may need to revise payroll practices
Employee lawsuits are on the rise, according to Federal Judicial Center data, as reported by the Seyfarth Shaw law firm. The figures show the number of cases have increased every year since 2000 and reached an all-time high during the year leading up to March 2012 when 7,064 lawsuits were filed.
This trend may be the result of sloppy payroll practices that have developed during times of economic instability. As companies tightened their budgets, they often let employees go and put heftier workloads on those they kept on board. For fear they might lose their jobs, many workers may not have complained in the past, but the incidents of wage theft and employee misclassification are now surfacing.
"When employees are laid off, that may be an opportunity for them to seek legal counsel either to see if there's any basis for contesting their termination or to make sure that what they're receiving in severance or other benefits is proper," said Richard Alfred, chairman of the national wage and hour litigation practice at Seyfarth Shaw LLP.
To avoid violations that can lead to lawsuits, employers can adhere to strict payroll policies that ensure workers are being properly paid for their time attendance.
This trend may be the result of sloppy payroll practices that have developed during times of economic instability. As companies tightened their budgets, they often let employees go and put heftier workloads on those they kept on board. For fear they might lose their jobs, many workers may not have complained in the past, but the incidents of wage theft and employee misclassification are now surfacing.
"When employees are laid off, that may be an opportunity for them to seek legal counsel either to see if there's any basis for contesting their termination or to make sure that what they're receiving in severance or other benefits is proper," said Richard Alfred, chairman of the national wage and hour litigation practice at Seyfarth Shaw LLP.
To avoid violations that can lead to lawsuits, employers can adhere to strict payroll policies that ensure workers are being properly paid for their time attendance.
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