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Unpaid overtime claims can be defended against

On Behalf of | Jan 3, 2019 | Employment Law For Employers

As an employer in the state of Kentucky, it is likely that dealing with employee disputes will be faced from time to time. While many processes and regulations can be put in place in order to minimize the number of employee disputes that arise, it is unlikely that they will ever be prevented completely.

A common cause of employee disputes is related to overtime and wage claims. These can be very costly for a company; therefore, it is important that everything is done to prevent and to adequately deal with these claims. Having a sound in-company process can help such issues from escalating into a legal claim.

What can be done to prevent claims?

The single most important thing that you can do to prevent overtime claims is to ensure that all workers are accurately classified and that you know which employees are exempt from overtime under the Fair Labor Standards Act (FLSA). Generally speaking, employees who have a consistent salary are not eligible for overtime, whereas employees paid per hour are eligible. Employee misclassification is a key reason why overtime claims arise.

How can I defend my business from an overtime claim when it does arise?

Instead of ignoring the issue, you should take the complaint seriously and take the time to understand the intricacies of the law. Many employees try to make a claim for unpaid overtime even when they have no grounds to do so, and these cases can easily be dismissed when you understand the law and keep organized.

If you are dealing with unpaid overtime claims in Kentucky, it is important to take action to defend yourself.