Avoiding Common Wage and Hour Mistakes When Handling Employee Terminations
Wage and Hour Compliance in Employee TerminationsHandling employee terminations can be a complex process, and even seemingly innocent mistakes in wage and hour matters can lead to legal challenges for employers. This page explores some of the most common wage and hour mistakes that can be used against an employer by terminated or disciplined employees. By understanding and avoiding these pitfalls, you can minimize legal risks and ensure compliance with employment laws.
Common Wage and Hour MistakesAvoid the Four Most Common Wage and Hour Mistakes:
1. Delayed Final Paychecks: In Massachusetts, it's crucial to pay a terminated employee's final paycheck on the day of termination, as state law strictly enforces this requirement. Even a one-day delay can result in significant penalties, including triple damages. 2. Unpaid Earned Commissions: Failure to pay earned commissions that were not scheduled to be paid before termination can be a potential wage act violation. While it's a common practice to include earned commissions in the final paycheck, challenges from employees may arise if they believe they've met the requirements to earn those commissions. 3. Overtime Classification: Overtime exemptions can be complex, and employers may genuinely believe that certain employees are exempt from overtime. However, disgruntled employees often claim that they should have been entitled to overtime pay. Properly classifying employees and adhering to overtime regulations is essential to avoid legal issues. 4. Accrued Vacation Accounting: When terminating an employee, their accrued vacation time is part of their final paycheck, and it must be paid in full. Employers need to maintain accurate records of accrued and taken vacation time to ensure compliance with this requirement. ConclusionIn the complex landscape of employment law, it's imperative for employers to navigate employee terminations with precision and care.
The most common wage and hour mistakes, such as delayed final paychecks, unpaid earned commissions, misclassification of overtime, and accrued vacation accounting, can become potential legal landmines if mishandled. To take as much risk as possible out of play and ensure compliance with employment laws, it is highly advisable to consult with an experienced employment attorney before making the decision to terminate a problem employee. By seeking legal counsel, you can gain valuable insights into the intricacies of wage and hour regulations specific to your jurisdiction, minimize the chances of costly legal disputes, and safeguard your organization's reputation. Don't leave critical wage and hour matters to chance—partner with experts who can help you make informed decisions and mitigate potential risks. |
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Emily Smith-Lee is the owner and founder of slnlaw. She is a 1996 graduate of Boston College Law School. She was previously a partner at the Boston office of a large international firm, where she worked for thirteen years before starting the firm that became slnlaw in 2009. She has been recognized as Massachusetts Superlawyer each year since 2013, and in 2018 earned recognition as one of Massachusetts Lawyers Weekly's Lawyers of the Year. She has written a book on employment law: Rules of the Road, What You Need to Know About Employment Laws in Massachusetts, and helped thousands of clients on both the employee and employer side with severance and non compete review and negotiation, wage and hour, discrimination and retaliation disputes, and advice about employment law generally.
Rebecca Rogers: Rebecca is a 2006 graduate of Boston College Law School, and has worked with slnlaw since 2013. She previously worked as an intellectual property litigation attorney for Fish & Richardson in Boston, Massachusetts, and clerked for the Massachusetts Supreme Judicial Court. Rebecca has helped clients with wage and hour disputes, employment discrimination and retaliation claims, review and negotiation of severance and non compete agreements, and advice to both employees and employers about navigating complex employment situations.
Jenna Ordway: Jenna is a 2013 graduate of Quinnipiac Law School, and also earned an LLM in Taxation from Boston University in 2015. She has been affiliated with slnlaw since 2011, first as a law clerk and then as an attorney. Jenna has been recognized since 2019 as a "Rising Star" by Massachusetts Superlawyers. Jenna has helped clients with review and negotiation of severance and non compete agreements, wage and hour disputes, employment and discrimination claims, and advice to small business owners about employment law and other business matters.
Elijah Bresley: Eli is a 2014 graduate of Seton Hall Law school, and has worked with slnlaw since 2020. He previously worked for a boutique employment law firm outside of Boston, and then for the Labor and Employment department of a large Boston firm. He also spent a year clerking for the judges of the Superior Court in Hartford, Connecticut. Eli has helped clients on the employee and employer side with all varieties of employment law issues, including employment discrimination, retaliation, and wage and hour issues, litigation in MCAD and state and federal courts, and advising employers about employment policies and practices.
Sharleen Tinnin: Sharleen is a 2010 graduate of Northeastern University School of Law, and has been with slnlaw since 2023. Prior to joining slnlaw, she worked with King, Tilden, McEttrick & Brink, P.C. on complex civil litigation matters. She previously worked for the United States Department of Justice, and received an "Excellence in Justice" award in 2017. Sharleen has helped clients with wage and hour, discrimination and retaliation disputes, review and negotiation of severance agreements, and litigation in MCAD and state and federal courts on employment related issues.
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Our experienced team specializes in employment law and wage and hour matters. We can provide guidance on proper wage and hour practices, including final paycheck timing, commission payments, overtime classification, and vacation accrual. By consulting with us, you can mitigate the risk of legal disputes and ensure compliance with employment laws. You can use the button below to schedule a call back from a member of our team, or give us a call at 781-784-2322.