Must-Knows For New York Employers

When To Hire An Employment Law Attorney

Ideally, business owners should consider hiring a skilled attorney right from the inception of their business – setting things up correctly from the get-go will make your life so much easier! However, when this proactive step hasn't been taken and an issue rears its ugly head, it's important you reach out and engage an employment law firm before making any statements to investigators or employees or responding to a lawsuit. The true significance of this lies in the reality that statements you make can significantly influence the course of a dispute for an extended period.

Legal counsel for businesses in New York, especially in the hospitality industry, truly is invaluable. By partnering with a reliable employment law attorney at the outset, business owners can navigate these complexities with a strategic approach, ensuring a better outcome in the long run.

If facing a lawsuit, after partnering with an attorney, send them a copy, sign an engagement letter, and let them handle the rest.

The Process Associated With Filing A Wage Related Lawsuit

The typical route an employee takes when filing a wage-related lawsuit is engaging a plaintiff's lawyer – known in New York for their assertiveness and knack for substantial settlements. Once retained, the lawyer takes the reins, steering the process and its trajectory.

Some lawyers take a measured approach. Rather than immediately resorting to a lawsuit, they initiate the process by sending a letter to the company. This often opens a window for negotiation, and settlements or resolutions can be reached before escalating to a formal lawsuit. Others don’t, however.

Once a lawsuit is officially filed, things get a bit more complicated. The court typically assumes a supervisory role in the resolution process. A growing trend is the court's inclination to direct cases toward mediation. While not entirely voluntary when mandated by the court, mediation traditionally presented a structured settlement process requiring mutual agreement. Though the court doesn't compel a settlement, this juncture often proves opportune for resolution before costs soar due to court expenses, escalating attorney fees, and the entrenchment of opposing positions over time.

Damages An Employee Might Seek In A Wage-Related Lawsuit

In a wage-related lawsuit against an employer in New York, employees may seek various damages rooted in the compensation owed to them. Often, disputes arise over the number of hours worked, leading to claims for back pay, which encompasses both unpaid and underpaid wages. What adds a significant punch to these damages is the inclusion of liquidated damages. As I've mentioned earlier, these effectively double the amount in question.

Beyond the core wage dispute, employees can pursue additional claims. This includes seeking damages for the employer's failure to adhere to the frequency of payment rule, particularly when manual workers aren't compensated within seven days of service. The damages can extend to cover interest, attorney's fees, and penalties for various compliance lapses.

Employers must be diligent in providing comprehensive information to employees upon hiring them, including details about wage rates, overtime, minimum wage, and other pertinent information. Failure to provide this notice carries a penalty of $5,000. Similarly, employers are obligated to furnish pay stubs with every payment, and non-compliance can result in additional damages, potentially up to $5,000.

Tacking on these additional penalties can balloon an already steep amount that's been brought against you in a lawsuit. The potential for damages accumulates swiftly, demonstrating the complicated nature of employee wage claim suits and the myriad areas where employers must tread cautiously.

The Statute Of Limitations

In New York, the general statute for wage claims is six years, providing a substantial window for employees to seek recourse for any issues with their compensation. The federal statute for wage claims is generally two years unless the violation is deemed willful. In cases of willful violation, the look-back period extends to three years. Given this discrepancy, employers often find themselves navigating both state and federal laws, considering the six-year look-back under state law and the potential variations under federal law.

Discrimination claims and non-wage claims operate under different statutes of limitation, potentially adding another layer of complexity. This excludes workers' compensation claims and various other claims, each with a unique timeframe. For more information on Legal Counsel For Businesses In New York, an initial consultation is your next best step.