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The effectiveness of wage and hour lawsuits

by | Jun 23, 2022 | Employment Law

The Fair Labor Standards Act and California’s wage and hour lawsuits set high standards for employers to compensate employees. Unless they claim an exemption, every California employer is required to pay minimum wage and overtime rates or face lawsuits filed by their employees.

California’s wage and hour law

The state’s employment laws require that employers pay minimum wage and overtime. The overtime rate must be one and one-half times the regular rate paid to the worker. An employee has to be compensated for working overtime without permission or for being forced to work against his or her will. If the employer benefits from the work, the employee is required to be paid.

Lawsuits and settlements

Some class-action lawsuits are filed in violation of the wage and hour law. The Del Taco restaurant chain settled a lawsuit for $50 million because it violated the rights of a nationwide list of employees who complained of unfair wages.

Class-action lawsuits are recommended to challenge corporations that exceed millions of dollars in revenue. Many franchise owners violate their state’s wage and hour laws and remain undetected for years. A lawsuit, particularly a large-scale claim, ensures that hundreds up to thousands of workers are reimbursed for their financial losses.

Employers are required to compensate employees based on minimum wage and overtime laws. The minimum compensation rates are determined by the state and not the employer. Since employees who suspect wage theft are protected under state and federal laws, the number of lawsuits has increased over time. In several cases, thousands of workers whose rights have been violated have convened to form class-action lawsuits and settlements.