How to Correct and Error in Employee Pay?


Hello, and welcome to Training with Legalese. Today, I would like to talk about improper pay to an employee and how to correct it as an employer.

Steps:

  • Call employment counsel. You can call me. I would be happy to assist you.
  • Pull payroll records so you can figure out if, in fact, there is a problem, how far back the problem goes, and how many employees are affected.
  • If your matter is classified as a misclassification case, then you will need to pull job descriptions to figure out where you went wrong. You will need to decide if your employees need to be assigned to different exemption categories.
  • Determine how to make a correction. Now, this is tricky. You cannot, technically, correct past problems without getting approval from a court or the Department of Labor. Your employment attorney will help you with the process. You can, of course, correct future problems and make some adjustments. You should definitely work with your counsel to figure out how to correct the problem moving forward and how to make the past payments. Keep in mind that employees are entitled to their back pay, liquidated damages, and attorney’s fees if an employer violates wage and hour law.
  • Allow an audit. Your employment counsel should audit  your wage and hour employees and all exempt employees to determine if there are any issues and to ensure you are compliant with federal statutes.

I hope this information was helpful  If you have any questions, as I said before, give me a call. My team would be happy to help you. Thank you for joining Training with LegalEase.