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Wage Claims, Overtime & Other Employee Compensation

SHOULD EMPLOYEES FILE THEIR OWN WAGE CLAIMS?

A: You are entitled to overtime payment even if you are a salaried employee. Depending on the circumstances of the claim, an employee may or may not need an attorney to file a wage claim.

     What is a Wage Claim?
     A wage claim is a claim that an employee may file against an employer to recover unpaid wages (including overtime compensation, commissions and bonuses); wages paid by check issued with insufficient funds; final paycheck not received; unused vacation hours that were not paid upon termination of the employment; unauthorized deductions from paychecks; unpaid or non-reimbursed business expenses; and compensation due for the employer’s failure to provide a meal and/or rest periods.

     What is the Time Period for Filing A Wage Claim?
     A claim based on an oral agreement must be filed within two years from the date the claim arose.
     A claim based on a written agreement must be filed within four years from the date the claim arose.
     A claim for minimum wage, unpaid overtime, and other statutory claims must be filed within three years from the date the claim arose.

     Where and How to File A Wage Claim?
     An employee may file a wage claim in court, in which case attorney assistance is important. In the alternative, the employee may file the claim with the Division of Labor Standards Enforcement (DLSE). The employee can fill out an Initial Report or Claim Form available at http://www.dir.ca.gov/dlse/DLSE-Forms-Wage.htm. The filing should include as much information and documentation as possible, including the name, location, method of doing business of the employer, and any documents to support the claim. Additional information on filing a wage claim is available at http://www.dir.ca.gov/dlse/HowToFileWageClaim.htm.

      Prompt Action Required
     An employee should not delay in contacting the DLSE to file a claim. There are strict time limits in which wage claims must be filed. In order for the agency to act on the employee’s behalf, the claim must be filed with the DLSE within three years from the date that the claim arose. Some penalties, however, are subject to a one year deadline.

     Consulting with an Attorney to Before Filing a Claim
     In order to determine the best option for the employee, seeking preliminary advice from an experienced attorney is helpful. A single individual claim may lend itself to DLSE resolution. However, the employee suffers the disadvantage of not having an attorney representation, while the employer usually has an attorney who can help them present their side. Note also that the DLSE decision is not final. Any party who is not happy with the outcome (including the employer) may file an appeal with the superior court. The court will conduct a new trial and may disregard the findings of the DLSE.

     It is also important to note that claims affecting a number of employees require attorney representation. These claims can be better prosecuted either by means of a class action or a Private Attorney General Act (PAGA) claim, which allows an employee to include the wage claims of other similarly aggrieved former or current co-employees.

     Finally, the situation in the workplace may involve several other issues with additional violations of employment rights that employees may not be aware of. Getting experienced legal help will enable employees to consider various options that will help them recover wages and enforce other legal rights under the law.

© Law Offices C. Joe Sayas, Jr.