Thursday, December 1, 2011

It's Cheaper to Prevent it than to Defend it

Many, many employers practice an ostrich approach to employee relations; they stick their heads in the sand and hope for the best. Of course, this leaves another part of their anatomy exposed, but for some this strategy works just fine for years. But then that employee happens—and we all know who that employee is—and the gig is up. Employers MUST be pro-active and implement appropriate policies and procedures BEFORE that employee happens.


Employment litigation is one of the most expensive types of lawsuits. Additionally, the California labor laws are “gotchas.” Employers are either in compliance or they’re not, and there’s no grey area. For example, employers either strictly comply with the overtime pay requirements or that employee will eventually bring a claim before the Labor Commissioner who will look back at three years of payroll records and potentially cause an audit of all employees’ payroll records.

Typically, an employer that is out of compliance with one aspect of their employee relations is out of compliance with many. Recently, a woman employed by an upscale retail establishment reported her employer was violating the laws related to overtime pay, meal and rest breaks, frequency of pay, and itemization of pay, and had then fired her for filing a claim with the Department of Labor. Similarly, employers routinely confide they are operating without employee handbooks, without the required postings, without a solid system for documenting employees’ hours worked, and the like.

While most employers are not purposefully violating labor laws, the effect is the same—you pay. Defending against these claims and ultimately paying for years of transgressions is almost always a very expensive proposition and has been the downfall of many businesses. The solution is to get your ship in order NOW, before that employee comes along. In fact, that employee may already be working for you.

For more assistance tailored to your particular business, contact attorney Rhonda Shelton Kraeber, Esq. at Alvis Frantz & Associates, (925) 516-1617 or Rhonda@alvisfrantzlaw.com. As the only employment law specialist in East Contra Costa County, I have been assisting employers with implementation of appropriate policies and procedures, as well as all aspects of the employer-employee relationship, for 20 years.