A Step-By-Step Guide To Addressing A Wage And Hour Lawsuit In California

In this article, you can discover…

• What to do if your business is sued for a wage violation in California. 
• The evidence you should gather to support your case. 
• How an experienced attorney can help you defend your business. 

What Is The First Step I Should Take If My Business Is Sued For Wage Violations?

It is never easy to be sued for wage violations, and the process can feel overwhelming without the right help. If you are being sued for wage violations, you should immediately contact labor law counsel who is knowledgeable and experienced in wage and hour law. 

What Records And Pieces Of Evidence Should I Gather To Support My Case?

You should locate any written policies, especially those in your employee handbook, that cover timekeeping, rest and meal breaks, and overtime. Second, you will need to locate any relevant time records for the employee or employees involved to support your case. You will also need to gather pay stubs that pertain to the time records in question. These three pieces of evidence will help us in defending your case.

Conversely, if we don’t have all of the above components and/or the components are incomplete or inaccurate it will be very challenging to defend the case. Wage and hour cases can be very black and white – you either have the documents/data to prove no violations (or minimal violations) or you don’t.

Attorney Scott Shibayama is a seasoned lawyer based in California who has helped countless clients just like you navigate the intricacies of wage and hour law. With 30 years of legal experience under his belt, Scott is prepared to help you respond to wage and hour lawsuits appropriately so that you can minimize the impact of your case.

Still have questions? Ready to get started? Contact Vision Law^® today to schedule an initial consultation.

If My Settlement Negotiations Fail, How Can I Properly Prepare For Trial?

If you have provided legally compliant written policies, and accurate and complete time records and pay stubs, and you are in a good position, we will feel comfortable taking your case to trial. However, a trial is most likely not necessary if the records to support your case are rock solid. It is possible that a case will go to trial, but it is likely only in cases where you are in a very defensible position and can resolve the case for very little money. 

In that case we use a “Code of Civil Procedure section 998” (CCP 998) offer. CCP 998 offers are complex but the idea is the employer makes a written offer and the plaintiff/employee has 30 days to accept. If not accepted then the plaintiff/employee must beat that offer at trial otherwise their attorneys’ fees and other costs incurred after the date of the CCP 998 offer are cutoff.

This is key leverage to avoid further litigation and trial because the plaintiff’s attorneys’ fees are what most often drive litigation of wage and hour claims. Plaintiff’s attorneys’ fees can easily be $100k+ in a single plaintiff wage and hour case and $400k+ in a class action or representative action. Thus to have maximum effect the CCP 998 offer must be made early in the case when the plaintiff’s attorneys’ fees are minimal. With the threat of their attorneys’ fees being cutoff most plaintiff’s counsel suddenly become more reasonable.

What Role Will An Attorney Play In Defending My Business?

First off, your lawyer can help you immediately get started on gathering written policies, time records, and pay stubs so that we can perform an evaluation of liability. This will help us to determine whether you are violating any laws and what damages or penalties you may be subject to. Evaluating your liability and determining your legal position is an important component to properly evaluating the settlement value of your case. 

Once you have determined the settlement value of your case, your attorney can negotiate with the opposing counsel to reach a reasonable and appropriate settlement. Again, remember that it is very rare for wage and hour cases to go to trial.

Are Wage And Hour Lawsuits Generally Resolved Through Settlement Rather Than Litigation?

Yes. 999 out of 1000 wage and hour cases will settle out of court; it is simply a matter of the settlement amount. One of the factors that influence the outcome of your case is the quality of the documents we have as evidence. This includes written policies, time cards, and pay stubs. Stronger documentation can result in lower settlement values, but you may encounter higher settlements if you lack evidence.

Unfortunately, an additional key factor is the opposing counsel, meaning the attorney of your employee. If opposing counsel lacks experience with employment law, this can make your case more difficult to settle. Whether experienced or inexperienced, we could have a very aggressive opposing counsel, which could result in obstacles when it comes to negotiating a reasonable settlement. 

However, if you are lucky enough to have a knowledgeable and level-headed plaintiff’s counsel, then we can typically resolve your case within 30 to 45 days of a demand letter or a lawsuit being received.

Still Have Questions? Ready To Get Started?

For more information on How To Respond To A Wage And Hour Lawsuit In California, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (855) 534-1490 today.