How To Handle An Employee Class Action Lawsuit Involving Disputed Wages

25 May 2022 by Jonathan Phillips

A class-action lawsuit is when a large number of individuals choose to band together to file a lawsuit. Occasionally, employees choose to band together to retaliate against their employers through a class action lawsuit. Depending on the state in which you reside, the law might be very favorable toward employees and you might need to contact an employer defense attorney for help.

Employee Class Action Lawsuits Involving Wage Disputes

A common issue employers might face is when employees dispute wages that are owed. If your employees successfully file a class-action lawsuit and are able to convince a judge that they are entitled to compensation for wages they are owed, then the company has to pay that. 

How Employees File Class Action Lawsuits

To file a class-action lawsuit, the employees must receive class certification. However, in many cases, you might be able to argue that the class certification is not appropriate because each employee has a unique case and they cannot all be lumped under a single class-action lawsuit. An attorney might discover that there is a lack of common questions of fact or law across all of the members.

How to Block the Certification of a Class Action Lawsuit

Your attorney may also be able to argue that the class action is not appropriate and that there are other more effective ways to dispute the case. Under these circumstances, you might be able to prevent your employees from filing a class-action lawsuit and your employees will instead be forced to file individual lawsuits that will be more expensive and difficult.

Why Settling a Lawsuit Is Better

Settling a class action case with a large number of employees who are disputing the wages they have been paid can be difficult. When you are instead handling the disputes of several individual employees, you can settle each individual case out of court and you will be able to keep your case much more private and you will be able to save money.

The Consequences of Litigating a Class Action Lawsuit in Court

While some class-action lawsuits are legitimate, there are some class-action lawsuits that will never be successful and are simply a drain on resources and distracting to your workplace. Regardless of the verdict, you might experience negative publicity as a result of the lawsuit and employee morale might be reduced. As a result, it's important to consult with an attorney so you can make sure that you handle the situation in the best way possible. 

Contact a local employer defense attorney for more info. 

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