Avoiding Wage and Hour Disputes

One of the most common types of employment litigation is dispute over the proper allocation of wages. Wage and hours disputes occur when there is a lack of clarity regarding what the law requires. The federal Fair Labor Standards Act and the New Jersey Minimum Wage Law function to ensure that employers pay their employees a fair wage for the type and amount of work they do. If you are unsure about whether your business is following these laws, a Monmouth County business lawyer can review your records and help keep you on track.

One of the biggest mistakes employers can make is to operate without a clearly articulated internal procedure for employees with discrimination or wage complaints. Creating and implementing these internal policies and procedures is critical when it comes to the defense of a legal claim from a disgruntled employee. Doing so will also demonstrate compliance with federal and state statutes.

The other primary pitfall when it comes to hour and wage disputes involves the classification of employees. There are two basic types of employee: exempt and nonexempt. Exempt employees operate without the minimum requirements of the law, including overtime and minimum wages. Nonexempt employees fall under the protection of the Fair Labor Standards Act and their pay structure is more highly regulated.

For most employees, the proper overtime wage is time-and-half for every hour worked over forty in a given workweek. It is important for workers to accurately document the hours they work, and promptly report any errors or omissions when their employers short them for overtime pay. Employers must make sure to follow state and federal regulations and keep accurate records of employee hours.

If you are involved in a wage and hour dispute as either an employer or employee, consulting a Monmouth County business attorney can help make sure that everyone involved adheres to the requirements of the law and that workers receive a fair compensation that they have earned.