Businesses have many moving parts. These must all work successfully together to maintain steady growth and profitability. Employees arguably have the most significant impact on the future of the company. Because of this, employers have a responsibility to ensure fair, harassment-free, and safe working environments. These encourage employee satisfaction and promote high productivity. When this fails, it can be detrimental to a business. There are legal consequences that could arise from potential employment litigation. This will cost the business time and money.

It is vital to understand how the law protects both the business and its employees. This can help companies implement policies and procedures to minimize the chances of having a legal claim filed against them. Otherwise, they could be held liable for failure to follow employment law.

Causes of Employment Claims

While employees can file a claim for multiple reasons, here are the most common:

  • Independent Contractor Misclassification: There are two main categories of employment: employees and independent contractors. An employee is entitled to various benefits that are not provided to independent contractors. These include specific workplace protections, minimum-wage requirements, workers’ compensation benefits, and meal and rest breaks. Independent contractors are not entitled to these same benefits. The law views them as their own employers who set their own working policies. However, some employers may try to save money by illegally misclassifying workers to avoid certain fees and costs.
  • Off-the-Clock Work: In some industries, employees may complete work-related tasks prior to a shift beginning or after one ends. When the employee is asked to do this, and the employer fails to provide compensation for this time, the employee could file a claim for unpaid wages.
  • Meal and Rest Break Violations: California values its workers. The state has passed laws to ensure that employers provide benefits for them to ensure fair treatment. One of these benefits is the established mandatory meal and rest breaks. 30 minutes of mealtime must be provided every 5 hours, and a 10-minute paid break must be provided every 4 hours. Unfortunately, some employers fail to do this.
  • Improper Documentation on Wage and Hour Statements: Pay stubs in California must contain specific information. These include hours worked, rate of pay, pay period dates, gross wages, net pay, employee information, the name and address of the employer, and any deductions. Some employers may find themselves in situations that require paying employees outside of normal payroll. Sometimes they fail to provide this information.
  • Discrimination, Harassment, Retaliation, and Wrongful Termination: Both state and federal laws protect employees from discrimination based on protected classes. These include race, sex, identified gender, age, and religion, among others. When employees are harassed or treated improperly because of their status, and the employer knowingly allows it to happen, they open the door for litigation. Additionally, an employer cannot terminate or unfairly evaluate the employee because of previous litigation, raising concerns, or other behaviors the employer deems harmful. If they do, they risk claims for retaliation and/or wrongful termination.

Steps to Avoid Employment Claims

Knowing the common reasons employees file claims can help employers implement procedures to avoid such situations. Here are some suggestions that could help organizations avoid the courtroom.

  • Implement appropriate time-keeping procedures. Keeping accurate records of employee time will help resolve many employment law issues. These range from appropriately providing information on pay stubs to ensuring proper meal and rest breaks are provided. Proper employee time records will not only ensure accuracy but could also be vital evidence should any litigation arise. Implementing a computer-based software system will allow customization to fit the needs of the business. Maintain these records for a minimum of four years.
  • Maintain an accurate and up-to-date employee handbook. Employee handbooks can help to deter potential problems that could lead to claims. A handbook should outline the operating policies and procedures of the organization. They should also include information on pay practices, discrimination policies, and documents provided to employees at the time of hiring and at termination.
  • Make documentation a standard practice. Documentation is the foundation for successful organizations. Not only does it help in processing, inventory, and day-to-day operations, but it is essential for employment records. It can also provide evidence should litigation arise. Employers should document regular performance reviews, disciplinary actions, conversations pertaining to concerns from either the employee or the employer, results of investigations, and more. When in doubt, document. This helps employers establish proper practices and procedures. It also creates necessary paper trails.
  • Work with an employment attorney. When in doubt, seek the assistance of an employment attorney. They can help oversee policies and procedures that are being implemented to ensure that they meet legal requirements. It is important to have this information communicated clearly and effectively. This can ensure that employees are aware of the expectations and practices within the business.

FAQs

Q: Can an Employer Sue an Employee in California?

A: While it is not as common, there are situations in which an employer could take legal action against an employee. Most often, employers will pursue a legal claim against an employee for:

  • Incidents of negligence
  • Violating non-compete clauses
  • Violating non-solicitation agreements
  • Breaching fiduciary duty
  • Violating no-raid provisions
  • Failing to provide reasonable notice of resignation
  • Employee theft
  • Theft of trade secrets
  • Defamation

Q: What Is Section 230 of the California Labor Code?

A: This code is specific to jury duty service as required by law. It states that an employer may not discharge or discriminate against an employee for taking time off to serve on an inquest jury or jury trial. The employee must give reasonable notice to the employer stating they are required to serve.

Q: What Could You Sue Your Employer for in California?

A: There are many reasons employees may seek to file an employment law claim against their employer. Common examples include:

  • Unpaid wages
  • Wrongful termination
  • Whistleblower retaliation
  • Discrimination or harassment based on protected group membership or genetic information
  • Retaliation for reporting concerns about the business to their employer, HR, or a legal representative

Q: How Do You File a Claim Against an Employer in California?

A: There are several easy steps to take to file a claim against an employer.

  1. Obtain the services of an employment attorney.
  2. Gather pertinent evidence and documentation per the guidance of the attorney.
  3. Submit a formal written complaint to your employer, providing them the opportunity to respond.
  4. Work with your attorney to gather witnesses and file a claim in court.

Employment Law Attorneys in California

Employment law has many complicated pieces, all of which are important to protecting both employees and employers. For any organization, the threat of legal action from their employees can be worrisome. With the right preventative measures in place, companies can save themselves time and money by avoiding employment law claims. If you are looking to keep your business out of the courtroom, add the knowledgeable and experienced attorneys from Fishman, Larsen & Callister to your list of preventative measures. Contact us today.