Wage and Hour Violation Settlements

Being mistreated at work is stressful, especially when your finances are tight.

You have the right to pursue legal action for the back overtime wages you are owed, and a dedicated employment attorney can hold your employer accountable. They can also answer your questions on how to get the most out of wage and hour violation settlements.

What are Wage and Hour Violations?

An employer commits wage and hour violations when they fail to fully compensate someone for the hours worked. Most violations involve overtime pay, but employers might also underpay the hourly rate. Both state and federal laws require businesses to pay additional wages for those working more than 40 hours in a week. The failure to pay can be the basis of a wage and hour violation settlement. 

Some violations occur when an employer forces someone to work off the clock, usually by making them perform work-related tasks before clocking in or after clocking out for a shift. Other violations may involve paying less than the minimum wage or illegal tip pooling. An attorney can answer questions and determine if there are grounds for legal action.

What to Know About Settlements

Although the process of resolving these cases is generally the same, every violation is unique. A worker should have a clear picture of the process before attempting to settle their wage and hour violation claims. 

It May Be Possible to Recover More Than Unpaid Wages

Many people pursue legal action to secure the pay they earned but never received. However, some jurisdictions might provide more than just those wages. In some states, it might be possible to recover liquidated, or double, compensation going back 2, 3 or more years, as well as attorneys’ fees and costs. 

Signing a Release is Part of the Process

When a case settles, both sides make promises to each other. The employer promises to compensate the worker for withheld wages and other damages. In return, the company gets to put the claim to rest forever. This requires the employee to sign a release. 

Usually completed as part of the settlement agreement, a release includes promises by the worker that they will not make any further claims based on their lost wages. There are some limitations on what rights can be waived under federal law, however. An attorney can answer questions about what kind of language these documents should include.

Wages May Be Taxable

Some lawsuit settlements are not taxed by the government, but the same is not always true in these cases. The income tax applies to money earned on the job, and a settlement that results in unpaid wages could result in a tax bill.

Talk to an Attorney About Wage and Hour Violation Settlements Today

If your employer fails to pay you what is owed, you may have a viable case for compensation. Resolving these claims is often possible through wage and hour violation settlements. Use our chat function or submit an online form for a free and confidential case review.