An Economically Rational Approach to Resolving Wage and Hour Claims In California
Employers sometimes respond to employee wage and hour claims in ways that cause them to sustain unnecessary financial loss and workplace stress. They pay more money in attorneys’ fees and litigation costs than they should. They sacrifice the time and resources of key employees over the course of litigation lasting a year or more. And they expose their workforce to the stress of an on-going lawsuit, leaving employees guessing as to what is happening in the case or, worse yet, directly participating in the proceedings. People take sides.
Once litigation begins these same employers produce reams of internal documents to the employee’s attorney whose singular goal is to take as much money away from the company as the law permits on behalf of as many of the employer’s workers as possible. To add even more workplace stress and potential future loss to the equation, employers expose themselves to an increased risk that other employees will assert similar claims against them as they learn about the claims and the law.
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