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Legal Issues in Minimum Wage Dispute Lawsuit in California

By Edited Jan 13, 2016 0 0

California labor laws are implemented to protect employees and prevent exploitation of workers by employers. It also stipulates measures for overtime pay and wage.

Some employers are not willing to pay overtime hours. They make needless deductions

or fail to give just compensation. When employers have a long record of unfair pay system, employees tend to raise a wage claim or wage dispute lawsuit.

A lawsuit may cause financial strain on the employer's part. It involves thousands to millions of dollars worth as damages. The law encourages employees to be familiar with their labor rights and make an effort to assert them.

Some of these vital laws include the following:

1. Minimum wage law- Since January 1, 2008, the minimum pay in California is $8/ hour. Companies need to abide with this standard. Collective bargaining agreement cannot waive this stipulation. However, there are exemptions such as salary rate for exempt employees such as outdoor salespeople, employees within the family business, and student workers at State Division of Apprenticeship Standards.

2. Overtime pay- Labor law stipulates that employers pay one and a half of the employee's hourly rate for every excess of normal 8-12 hour service. Overtime pay must be given for the seventh day of work rendered for the company. Double pay must be given for work rendered in excess of 12 hours in any weekday.

Double hour rate pay is also given for service rendered in excess of eight hours on the seventh day. However, employees need to determine their employment status. Regular employees with managerial or executive positions are often granted with "exempt status". Exempt means the employee is not entitled to overtime pay.

Non-exempt employees are entitled to receive and assert overtime pay for extra hours rendered. Even "at-will" employees or those without written contract are covered with overtime laws.

3. Deduction- The law prohibits employers from deducting unnecessary amount from the salary or wage. Even reasonable office losses like broken tools/equipments/materials cannot be deducted from the employee's wage or salary. However, there are certain deductions that the labor law allows. These are:

a. Government-mandated income tax

b. CBA approved health or pension programs.

c. Deduction explicitly approved by the employee, which does not affect the standard pay.

California Wage Dispute Lawsuit may be prevented if both the employer and the employee are aware of labor laws and employment rights. Employees need not suffer from an unjust payment system in the company. He or she can file a wage claim. This effort to correct any abuse on employee's basic labor rights will prompt employers to review their policies on overtime, wage, or other practices.

Consult with a professional California Wage Dispute Lawsuit attorney in Los Angeles and learn more on how you can file a wage claim.

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