The Cost to California Businesses of a Wage-Dispute
Sep 2 2020 0

The Cost of Wage-Disputes to California Businesses

Business owners have many responsibilities and duties to keep their business running. One of the responsibilities that an employer has is to properly compensate their employees. Sometimes problems arise related to compensation and when that happens an employer can face some serious penalties. Not every compensation discrepancy is intentional, there are instances when these situations arise from an innocent mistake on the part of the employer. Regardless, a wage dispute can go to court and when this happens a business owner is at risk of potentially having to pay a significant settlement amount.

If you are being accused of a wage-violation action, not only are you putting yourself at risk for having to pay a high amount of money to have it resolved, but you could gain very bad press. When your business is hit with a heavy financial blow along with poor PR, it could prove too much to bear. These situations require the skilled care of a talented California business lawyer to ensure that you are protected and not left vulnerable. Minimizing the press your business could get from the incident and ensuring your rights are secured can be done with the help of the Los Angeles business lawyers at Leiva Law.

How Can a California Wage Dispute Happen?

Your employees may claim any number of situations as to why they have been treated unfairly with regard to their wages. For instance, truck drivers for Frito-Lay Inc. said that the company was not accurately recording their wages and hours worked and were not paying them for their meal and break times. Payment during meals and breaks is something that is mandated by law. As a result of the allegations, Frito-Lay Inc. ended up resolving their legal battle with their truckers by agreeing they would pay $6.5 million.

Another wage dispute can take place when an employee quits their job. When an employee vacates their position with your business and they don’t provide notice, California business laws say that they must be paid the wages they earned no later than 72 hours after they leave. If they do give you sufficient notification that they are leaving their position, these workers should be paid on their last workday.

It is imperative that the employer pays their employee on time to avoid a wage dispute incident. There are additional penalties that a California business who are dealing with a wage-dispute can face such as:

  • Payment to the employee of their missed wages plus another 30 days of wages.
  • Payment to the employee of their missed wages in addition to interest payments for the time that wages have been missing.
  • Payment of the employee’s legal fees.
  • Potential time in jail.

Speak with a California Business Attorney Today

The Cost to California Businesses of a Wage-DisputeDon’t’ even allow this situation to take place, to begin with. When you work with Leiva Law, our experienced Los Angeles business lawyers will ensure that your compensation policies are appropriate under the law. Call Marlene Leiva, a trusted Los Angeles estate planning and business attorney today at 818-519-4465 to schedule your free consultation.


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