Class Action & Employee Law Suits

The US Supreme Court has ruled allowing companies to require workers to sign away their ability to bring class-action claims against management.

The justices endorsed the legality of the growing practice by companies to compel workers to sign arbitration agreements waiving their right to bring class-action claims on various disputes, primarily over wages and hours. Class-action litigation can result in large damages awards by juries and is harder for businesses to fight than cases brought by individual plaintiffs.

It is another good reason to have retained a firm of attorneys with expertise in employment law. It is our experience that when ex-employees know you have a good, commercial attorney on your side… they do not sue

According to a report by the California Chamber of Commerce, the top ten reasons employers get sued are:

  1. Classifying all employees as exempt, whether they are or not.
  2. The flexible lunch break.
  3. Classifying employees as independent contractors.
  4. Not providing harassment and discrimination training to managers and supervisors.
  5. Letting employees decide which hours and how many they want to work each day.
  6. Terminating employees for taking a leave of absence.
  7. Failing to provide a final paycheck to an employee who has not returned company property.
  8. Giving employees loans and deducting repayments from their pay checks.
  9. Non-compete agreements.
  10. Having a “use it or lose it” vacation policy but failing to pay back money-owed on termination.

Remember, if you outsource your employees, you will not have employee lawsuit issues, but do check rules in respect of sub-contracting.