In the past few years, the news media have reported on a number of wage-and-hour lawsuits against prominent business, including Walmart and Amazon. Meanwhile, the ride-sharing service Uber is in litigation over accusations that its drivers should be classified as employees rather than independent contractors.
These issues don’t affect just large, household-name companies. Many small businesses run into trouble over their labor practices every year. No doubt there will be more cases next year, if a proposed new rule from the U.S. Department of Labor goes into effect mandating overtime pay for more types of employees.
Wage-and-hour and other types of employment-related lawsuits often come about after a disgruntled employee seeks legal recourse. However, many such cases arise not out of employee complaints, but in the course of audits and inspections from state and federal authorities.
As with most types of business litigation, the best course of action for a business is to avoid the issues before they become a problem. A skilled business attorney can help business owners to make sure their employees are classified correctly and their payroll practices are in line with local, state and federal laws. Spending a little money upfront at this stage can save a lot of money later on if it prevents litigation down the road.
If a dispute arises, business owners should seek out help from an attorney with business litigation and transactions as soon as they can. Again, it is usually more cost-effective to resolve a dispute quickly and amicably rather than fighting it out in litigation.
Category: Business Litigation
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