A variety of different workplace disagreements could lead to worker lawsuits. Sometimes, employees file lawsuits against organizations when they claim that a recent termination was wrongful. Other times, they may allege that a business engaged in discriminatory practices, such as allowing workplace harassment.
Some employment lawsuits rely on a worker’s subjective opinion about the conduct of others. Other employee lawsuits have a basis in very black-and-white scenarios. A worker declares that an employer has violated state or federal statutes. There may be clear evidence one way or the other. Allegations of wage law violations are often easy to validate or disprove. The courts review employment and pay records to ensure compliance with applicable regulations.
Employees who do not think they received the pay they deserve might file civil lawsuits against their employers. Overtime wages, in particular, tend to be a source of much conflict. The civil courts could very well see an influx in wage lawsuits soon due to a recent change in federal employment statutes.
Many more workers may now qualify for overtime pay
Companies may have to pay overtime wages for employees who receive hourly compensation. Workers who receive lower salaries are also potentially eligible for overtime pay if they work more than 40 hours in a given pay period.
Until recently, the cutoff for overtime exemption was relatively low. Workers who made $35,568 annually were previously exempt from overtime pay rules. That changed as of July 1st, 2024. The current minimum salary to make a worker exempt from overtime is $43,888. Even that is set to increase again soon. On January 1st, 2025, the minimum salary increases again to $58,656.
Companies have to adjust their employment practices to avoid worker wage claims that could result in lawsuits. Depending on the circumstances, it may be more cost-effective for some businesses to increase worker salaries. Other organizations may need to start paying overtime when workers with lower salaries contribute more than 40 hours per pay period to the company.
Organizations that aren’t proactive about complying with this new regulation could end up facing lawsuits brought by frustrated and inadequately compensated employees. Following changing employment statutes is crucial for healthy employee relationships. Organizations that track evolving employment regulations can avoid violations that could lead to expensive conflicts with workers.