Wage Claims – Nasty but (Sometimes) Necessary
Recently I have seen an increase in the number of current or former employees filing wage claims against their employers nere in California. There often is a good reason for the filing – in my experience, employees typically do not spend time and effort on the wage claim process unless they have some basis for concluding they have been underpaid, such as:
- Unpaid wages, including commissions or bonuses
- Accrued but unused vacation time not paid at the time of termination
- Unauthorized deductions from paychecks
Wage claim procedures can be nasty from the employer’s perspective, because the employee – who need not be represented by counsel – can have the Labor Commissioner issue subpoenas for documents, records or witnesses. (The employee needs to pay associated out-of-pocket expenses.) Few employers want to be subjected to Labor Commissioner subpoenas, much less the hearing at which the subpoenaed evidence will be presented.
The bottom line for employers: Pay employees what they are owed throughout their employment and upon termination. Complying with law usually is more cost-effective than defending a wage claim.
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact an attorney directly.
Dana Shultz is a business-savvy lawyer located in Northern California's San Francisco Bay Area (in the East Bay, near Oakland) who has in-depth knowledge of law, business, technology, and the needs of startup and early-stage companies.