Plaintiff attorneys have deluged the courts with wage and hour class actions and PAGA lawsuits. The first question an employee advocate asks of their potential client is, “can I see a pay stub?” Instead of agreeing to represent employees for their harassment or wrongful termination claim, they convince the disgruntled ex-employee to act as a representative for a PAGA or class action for improper wage and hour practices.
This practice has blossomed into a cottage industry in which plaintiff attorneys are more focused on quick expensive settlements rather than drawn out litigation. Because of the potential stacking of penalties and the difficulty of maintaining compliant policies and practices, employers are faced with claims of multi-million dollar potential liability. As a result, many employers claim at mediation that these astronomical liability claims would put them out of business. However, the parties typically reach resolution at an unpalatable figure that allows the company to continue in business.
On occasion a business takes the position that it would be easier to file for bankruptcy protection than agree to a crippling settlement. At first blush this may appear like a good idea, because the employee’s attorney and their client can stand in the back of the line with all the other unsecured creditors and receive either pennies on the dollar or nothing at all. The problem is Labor Code section 558.1 which explicitly targets owners, directors, officers, or managing...
Tehran – Saba: The Iranian Foreign Ministry condemned the subversive actions taken by the rulers of Abu Dhabi against the Islamic Republic of Iran. Last night, Tasnim News Agency reported that the...