Various labor laws, including the federal Fair Labor Standards Act (FLSA) and individual state laws, exist to protect workers from employers who might try to take advantage of them. One of the ways these laws protect workers is by guaranteeing them the right to access all the information related to the hours they worked and the pay they earned.
The labor laws ensure this by requiring employers to provide their workers with accurate itemized wage statements along with their paychecks. These statements must accurately list the employer’s name, the worker’s name, the pay period, the number of hours worked in that pay period, including any overtime, the employee’s hourly rate of pay, all wages earned in that pay period, and all deductions made from the employee’s pay, such as taxes, health insurance, and Social Security.
Employers who fail to provide these itemized pay stubs could potentially face hefty fines in certain parts of the country. California in particular has a reputation for legislation that favors the workers, which could have something to do with why one California employer recently decided to settle a paystub class action lawsuit, rather than take their chances by continuing to fight the legal battle in the courts.
The class action lawsuit was filed in December 2014 against T C Construction Company Inc. The lawsuit alleges the construction company failed to include certain required information on the pay stubs it provided to its workers, including the full, accurate name of the company, the company’s full address, and separate lists of regular, overtime, and double-time hours worked, along with their respective rates of pay. An employee working in California can earn double her normal hourly rate for all time spent working after twelve hours in a day or for the seventh consecutive day of work.
Rather than continue to try to fight the legal battle in court, T C Construction has agreed to settle the lawsuit for up to $1 million. The settlement covers a class of plaintiffs that includes all current and former employees who worked for the construction company any time between November 21, 2013 and December 31, 2014. The total amount paid in the settlement, and the amount paid to each individual claim member, will depend on the total number of class members that submit a valid claim before the deadline of December 10, 2015.
T C Construction continues to insist it did nothing illegal, but it has decided to settle the lawsuit to avoid the hassle and expense of pursuing a legal battle in court. This is common with class action lawsuits, especially with large classes, because they have the potential to drag on in the courts for years, creating a drain on the company’s resources that could be better spent elsewhere. Even if the company is sure of its innocence, you can never be certain which party the court will favor, so by settling the lawsuit outside of court T C Construction gets to avoid the uncertainty of a court decision that may or may not go in its favor.
The Chicago class action attorneys at the Chicago Overtime Law Center have three decades of experience fighting to help employees who are victims of wage, overtime and tip theft by their employers. We have a team of Chicago unpaid overtime lawyers who concentrate on prosecuting state and nationwide class action lawsuits. Our attorneys work out of Chicago and Oak Brook offices and pursue claims for workers all over the Chicago area including Rockford and . We protect unpaid workers who haven’t received overtime throughout the Chicago area including in DuPage, Lake, McHenry, Kane and Cook Counties.
Our Markham and Chicago Heights overtime lawyers are intimately familiar with the issues that arise during wage claim litigation, and we know the laws that govern overtime cases well. Many employers mis-classify employees as being exempt from overtime laws and pay workers salaries instead of hourly wages in order to avoid paying them overtime. Some employers mistakenly classify employees as exempt and others intentionally do so in order to circumvent the law. In either case, workers do not receive the wages they should, and a lawsuit may be the only way to recover their earned wages.
The Chicago Overtime Law Center is based in Chicago, and represents clients throughout the country who have unpaid overtime and other employment right claims.