Many business owners started their careers punching a time clock, but after climbing the ladder to success, it’s easy to forget the satisfaction of clocking a few extra hours or the significance of the overtime pay that came along with it.
However, the recent increase in class-action lawsuits for alleged violations of wage and hour laws has become an exasperating reminder for many employers.
Such cases now account for nearly 85 percent of all employment class-action lawsuits, and legal experts don’t see the trend ending anytime soon. Allegations include employers’ failure to pay minimum wage, unpaid overtime and inaccurate “exempt” or “nonexempt” employee classifications. Exempt employees are not eligible for overtime pay regardless of extra hours worked, while nonexempt, or hourly, employees can earn overtime.