Responding to Employee Complaints About Pay
Sometimes an employee just doesn't feel they are making enough money. Under the law they are free to request higher pay, and the employer is free to either negotiate compensation or not.
There are certain employee complaints that have to be treated more carefully. These include complaints about nonpayment of wages, nonpayment of overtime, minimum wage violations, or pay differences based on gender. Each of these are considered protected activity under the law, and employers must be careful they are not taking adverse action because the employee complained.
Also, if the employee has a legitimate grievance under any of these laws, you are better served by correcting the problem immediately. Otherwise you will remain at risk for lawsuits by any of your affected employees.
There are certain employee complaints that have to be treated more carefully. These include complaints about nonpayment of wages, nonpayment of overtime, minimum wage violations, or pay differences based on gender. Each of these are considered protected activity under the law, and employers must be careful they are not taking adverse action because the employee complained.
Also, if the employee has a legitimate grievance under any of these laws, you are better served by correcting the problem immediately. Otherwise you will remain at risk for lawsuits by any of your affected employees.
Responding to the Employee ComplaintIf you have a human resources department or staff, you should make sure they are involved in the process early on. They should have some knowledge of the relevant laws, and can give you some idea whether there is actually a legal problem.
You should also consult with an employment lawyer as soon as you are aware of the complaint. They can advise you about how to handle the complaint, as well as whether you have any potential legal violations to worry about. If the employee has a valid complaint, you should take steps to resolve it. This could involve paying the disputed amount. If the complaint is about something systemic, like overtime classification, it might require some overall policy changes within the company. If the complaint is unfounded, you should clearly communicate to the employee why you believe they are being paid lawfully. Avoid RetaliationYou should be careful not to take any action that could be seen as retaliation. This includes putting negative comments in a performance review or terminating or disciplining the employee. This can be problematic for an employer if the person who complained is also having performance problems at work.
We have seen business owners dealing with employees with a poor performance record. They often feel like the complaints about pay are just the last straw. Worse, a savvy employee may know that this is protected activity and make the complaint to protect themselves from discipline. A simple misstep in dealing with this employee could lead to an expensive wrongful termination claim. This is why it is so important to get legal advice when you receive an employee complaint about pay or wages. Consider a Full Review of Employment PoliciesA single employee complaint could reflect just one disgruntled person. But it could also be an indicator that you have potentially larger exposure. This is particularly the case if the complaint is about gender-based pay differences or overtime classifications. Learn more about the 10 most common wage and hour violations in Massachusetts.
An experienced employment lawyer should be able to review your payroll policies and help you make sure you are in compliance. If the issue is about gender-based pay differences, an attorney can also help you conduct a pay equity audit. A good faith audit will give you an affirmative defense against any claims under the Equal Pay laws. How We Can HelpWe can help you respond to an employee complaint, review your employment policies, and address any legal issues you find. You can use the button below to schedule a call back from a member of our team, give us a call at 781-784-2322, or fill out our web form to let us know a little more about your situation.
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