As we warned, wage and hour claims are on the rise. With the high unemployment rate, workers classified as independent contractors are filing unemployment claims triggering audits by state labor departments and other agencies. Simultaneously, state and federal agencies have stepped up enforcement efforts and are focusing heavily on wage and hour violations including unpaid overtime and poor recordkeeping allegations.
At Brody and Associates, we recently resolved four wage and hour cases in which clients faced significant exposure, and we’re pleased to report we obtained the following excellent results.
- In a federal wage and hour lawsuit filed against our client in the United States District Court for the Southern District of New York the plaintiff’s attorney sought damages in excess of $75,000 for six years of allegedly unpaid overtime. We negotiated a settlement of $14,000, a fraction of the claimed damages. In addition, we saved the client a significant amount in legal fees by finalizing the settlement before any courtroom proceedings took place and before filing any responsive pleadings.
- When the Connecticut Department of Labor audited our client, the owner of several restaurant franchise locations, our client was assessed over $35,000 in penalties stemming from only $4,000 in alleged unpaid wages. Our client was accused of over 100 wage and recordkeeping violations. Before the scheduled hearing took place, we negotiated the penalties down to only $1,200.
- A New York client was assessed a penalty by the Workers’ Compensation Board of over $150,000 for allegedly failing to maintain proper workers’ compensation and disability insurance coverage. We appealed the penalty assessment and succeeded in eliminating over 98% of the penalty!
- Another New York client was facing a full-scale audit of all its employees by a division of the New York State Department of Labor. We identified the underlying key issues which triggered the audit, and resolved them to the satisfaction of the auditor. As a result, the scheduled audit was cancelled.
Brody and Associates regularly advises management on complying with state and federal employment laws including wage and hour laws. If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.965.0560.
