Disputes about wages are among the most common reasons that workers sue their employers. When workers believe that a company has not followed both federal wage rules and unique California employment statutes, those workers may band together as a group to take legal action against their employer.
A class action wage and hour lawsuit can lead to major legal costs for an organization. If the employees prevail in court, the company may face even more significant financial losses. Beyond the immediate impact of the lawsuit on company finances, the record of the lawsuit could affect the company’s reputation. Employees considering a job opportunity in the future may learn about the lawsuit and might have second thoughts about working for the company.
Resolving wage and hour issues before they go to trial is typically in the best interests of a California employer. Most companies are proactive about complying with minimum wage rules and California’s unique standards for calculating hourly pay. However, certain company practices that may be legal elsewhere can lead to wage claims in California. Asking workers to be on-call or on standby while they are not actively working could potentially lead to expensive wage claims.
California requires pay for standby availability
A worker who is on call or on standby for a shift cannot do whatever they want with their time. They have to remain somewhere where they have a cell phone signal. They need to be sober and awake so that they can respond promptly to requests from their employer. They cannot make use of their free time the way that someone who has no job responsibilities potentially could.
As such, being on standby or on call affects a worker’s life and limits their freedom. California requires that employers pay workers at least minimum wage for the time when the company expects them to be on call or ready to call back and come in for a shift. Companies expecting workers to remain available on their days off could potentially face costly wage and hour lawsuits brought by their employees.
In some cases, businesses may be able to settle such lawsuits by paying for some of a worker’s time and committing to different practices in the future. Ideally, employers expanding into California or changing company practices to require on-call shifts should consult with an attorney about California wage laws before scheduling workers for standby work.
Learning more about California’s unique state wage laws can be beneficial for organizations that want to avoid wage and hour lawsuits that could eat into their profit margins and damage their reputations. On-call wage requirements are one of several important payroll standards that can lead to lawsuits filed by frustrated employees.