In recent years, you may have seen or heard advertisements asking a generic question: “are you sure that your boss is paying you correctly?” The increased targeting of employers in the media means that companies, both large and small, are particularly susceptible to unpaid wage or overtime claims under the FLSA, the federal statute that establishes minimum wage and overtime payment obligations for companies. While the wage and overtime rules seem simple, they are actually quite complex and easy to violate. Plaintiffs’ attorneys are often eager to ?le unpaid wage claims given that the FLSA includes a fee-shifting provision which allows attorneys to obtain large awards on even the most modest of claims. As a result, more and more FLSA-based lawsuits are being ? led in state and federal courts. In fact, the number of FLSA-based suits ? led in federal courts has increased annually since 2000, as has the average settlement cost in FLSA cases. The reality is that an employer’s $100 mistake could turn into a $100,000 judgment.
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