6 ways to ward off wage lawsuits

6 ways to ward off wage lawsuits

Wage laws may return to spotlight, employment law attorney says.

April 23, 2018

While a federal overtime rule that was slated to take effect in late 2016 was put on hold, the Department of Labor (DOL) is expected to revisit the issue in the future, says David Gobeo, an employment attorney with Ford & Harrison LLP.

Gobeo told a breakout session at the CUNA HR & Organizational Development Council Conference in Fort Lauderdale, Fla., that he expects the DOL to revisit the minimum salary for exempt employees.

Gobeo encourages credit unions to reduce the risk of a wage lawsuit by taking these six steps:

  1. Require all employees, even exempt staff, to record their time.
  2. Audit job descriptions for exempt positions to determine if they match the actual duties those employees perform.
  3. Implement safe-harbor polices to correct payroll mistakes. “Give them a specific procedure to follow and put it in writing,” Gobeo says.
  4. Have employees and supervisors sign off on pay and time records, and any changes made to those.
  5. Train managers on lawful pay practices.
  6. Put any policies and procedures regarding pay in writing.

“None of these things can prevent you from being sued though,” Gobeo cautions.

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