3 business practices that could lead to wage and hour claims

Mar 20, 2025 | Employment Law

There is a degree of conflict in any employment relationship. Organizations want the best talent for the lowest price, while workers typically want the best wages and most flexible working arrangements possible.

Ideally, the business and the professional establish terms that everyone agrees are appropriate. Both parties should fulfill their contractual obligations and comply with all relevant state and federal laws. Unfortunately, wage issues are relatively common, especially for those in hourly positions. They are a leading cause of employment-related lawsuits.

There are numerous situations that might lead to workers taking legal action against their employers in pursuit of wages. For example, the following company practices might increase the likelihood of wage claims.

Unpaid off-the-clock work

Hourly workers in California have a right to wages for all time worked. That is different from the federal standard that allows employers to require small amounts of uncompensated labor. Businesses in California cannot demand that workers answer emails in the evening or on the weekend without appropriately compensating them. They cannot require that hourly workers clock out before performing certain routine job tasks or that they complete certain responsibilities before clocking in for the day.

Overtime wage violations

California has numerous scenarios in which workers may be eligible for overtime pay. Workers typically receive at least 150% of their standard hourly wage if they have to work more than 40 hours in a particular work week. Employees may also be eligible for overtime pay if they work more than eight hours per shift or if they work seven days in a row without a break. When companies do not pay overtime wages as they should, workers might take legal action in response.

Time clock rounding

Another payroll practice that is legal elsewhere and not in California is the practice of rounding billable hours. Some companies pay workers in five, 10 or even 15-minute increments. However, modern timekeeping software and California’s strict wage regulations make such practices inappropriate.

Workers who have not received the pay that they deserve may have grounds to take legal action against their employers. Learning more about payroll regulations can help professionals assert themselves and help them to decide whether to formally pursue a wage and hour claim.

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