Compensating an employee for their work should be one of the more straightforward aspects of running a business, or so it might seem. However, there are any number of reasons that a wage dispute might arise between a worker and their employer. Here are seven major reasons for wage disputes that you should be careful of, whether you are a business owner or an employee:
- Overtime disputes
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- Overtime is a common problem seen in wage disputes across many industries. This can arise due to an employee allegedly being forced to work overtime without being paid, or due to not being paid time-and-a-half as required by law.
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- Minimum wage disputes
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- Some employees will also claim they have not been paid the minimum wage, as dictated by state and federal law. Often, these disputes arise with jobs that do not have conventional compensation schemes, such as jobs where employees work for tips or commissions.
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- Tip sharing
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- While many restaurants and other businesses have tip sharing or pooling in place, there are laws about how these arrangements can function. When employers violate the laws around tip sharing, it can lead to potential wage disputes.
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- Arguments over breaks
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- Employees are entitled to periodic breaks for meals and rest by law. Employers can potentially get in trouble if they attempt to force employees to work through breaks, or cut breaks short without good reason.
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- Employee misclassification
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- A surprising number of wage disputes arise from employee misclassification, which is when an employee is improperly classified as an independent contractor (or vice versa). This can lead to a number of serious issues, including arguments over compensation, Social Security withholding, and access to employee benefits.
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- Wage deductions
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- There are specific reasons why an employee might have their wages deducted, but generally speaking, this should not be done as a penalty. When an employer attempts to deduct things like breakages or cash shortages, however, they may run afoul of wage and hour laws.
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- PTO issues
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- Employees who earn paid time off are generally entitled to take that time off whenever they wish. When an employer refuses to allow an employee to take earned PTO, it can lead to serious legal disputes.
If you have an employment issue, give the Law Office of Andrew Ross Sack a call. Andrew Ross Sack is a New York and New Jersey employment lawyer who has considerable experience in handling the many aspects of labor and employment law. To schedule a consultation with New York City/Long Island/Westchester employment lawyer Andrew Ross Sack, call (516) 526-3319 or visit his contact page.