If you are a business owner in Seattle, it’s crucial to be conscious of the risk of wage and hour class action lawsuits. These types of claims are on the rise, and to combat exposure, Seattle employers should ensure they are in compliance with Washington’s strict wage and hour requirements.

At Rocke Law Group, PLLC, our employment attorneys in Washington are prepared to help employers pursue and maintain compliance in Seattle to avoid a wage and hour class action against their company.

What Is a Wage and Hour Class Action?

 A wage and hour class action is different from an individual class action, as these types of claims involve multiple employees who join together, forming a class, with a common complaint against an employer. The main reason many courts allow this option is that it is more accessible and cost-effective than trying to decide a legal issue one person at a time.

For employers, class action lawsuits often carry more risk than individual lawsuits. Even if the wage and hour class action isn’t successful, it can take a great deal of time and money to resolve. They also often garner more attention on social media and on the local news, causing costly reputational harm.

Why Seattle Employers Face Higher Risk

Washington has notoriously rigid employee rights and protections, which hold our state’s employers to a higher standard. Because of this, Seattle employers often face a high risk of wage and hour class actions if they fail to maintain compliance.

It’s also worth mentioning that these laws are subject to change, so maintaining compliance requires regular upkeep.

The risk of a class action often increases with the number of employees a company has. A seemingly small mistake resulting in noncompliance, multiplied across an entire workforce, can become a large and costly liability. 

It is strongly recommended that Seattle employers work closely with an employment attorney who can keep them up-to-date with Washington’s employment laws and provide them with tailored advice and implementable solutions to reduce their risk of a class action lawsuit. If you are facing a class action, your attorney can guide you through the options, like settling or litigating, and the best strategy to align with your business goals.

Common Triggers for Class Action Lawsuits

One of the best ways to mitigate the risk of wage and hour class actions is to identify what commonly triggers these types of lawsuits:

• Misclassifying employees: Seattle employers must appropriately classify employees – accurately distinguishing between employees vs independent contractors and exempt employees vs non-exempt employees is key.
• Overtime violations: all eligible employees must be paid overtime, and the amount of overtime must be calculated correctly to avoid underpaying employees.
• Missed meal and rest breaks: all eligible Washington employees are legally entitled to meal and rest breaks throughout the day. This includes a paid 10-minute break every four hours for non-exempt employees and an unpaid 30-minute meal break for employees working over five hours.
• Wage deductions: Washington employers are allowed to deduct from their employees’ paychecks in certain circumstances, but this cannot be done as a way of shifting business costs to the employees.

Early Warning Signs of Wage and Class Actions

Below are some early warning signs to watch for that your employees are dissatisfied or that you aren’t maintaining wage and hour compliance:

• Your HR department has received multiple employee complaints about the same issue;
• You have noticed inconsistent payroll practices;
• Your business does not have adequate written policies; and
• Your business has gone through substantial growth without the necessary compliance updates.

Strategies Seattle Employers Can Use to Reduce Class Action Risk

Class action lawsuits often result in devastating consequences for businesses by disrupting operations and causing both financial and reputational harm.

 To ensure compliance, consider taking the following steps:

• Stay informed: Washington employment laws change rapidly and often benefit the employee while creating a compliance burden for Washington employment laws change rapidly. Keep your policies, contracts, and practices up to date by subscribing to our free newsletter, in which we provide employers with relevant legal updates.
• Get legal counsel: Not only can an experienced employment attorney defend you in class actions, they can help you avoid them entirely through proactive prevention. An attorney can review your policies, employment contracts, and practices, offering strategic insights and advice.
• Implement sound systems: To avoid common wage and hour violations, you need to have strong, compliant timekeeping and payroll systems in place.

Get in Touch With a Class Action Defense Lawyer Today

Wage and hour class actions are detrimental and at times, even devastatingly destructive, for businesses that don’t have legal safety nets in place. Seattle has strict employment laws that you must abide by, and hiring informed employment counsel is one of the best ways to ensure you are doing so.

At Rocke Law Group, PLLC, our class action defense lawyers can help you proactively reduce the risk of employee lawsuits and resolve them efficiently if they do arise. For legal representation from one of our attorneys, contact us today at (206) 652-8670.

Frequently Asked Questions (FAQs)

What turns an individual wage claim into a class action?

When a group of employees has had the same experience and they band together to take legal action. Courts apply a test to certify a case as appropriate for a class action.

How expensive are these cases?

Because wage and hour class actions involve a large group of employees, these claims tend to be much more expensive than individual lawsuits due to especially extensive damages and legal fees. They can cost hundreds of thousands to millions of dollars

How can employers avoid class actions?

The best way to avoid class actions is to maintain strong compliance practices that are updated regularly. Our attorneys have specific strategies for our clients to implement.

Are small businesses at risk?

Yes. Any business is at risk if you have a group of current and past employees who experienced noncompliant wage and hour practices under its employment. Having more than 40 employees in the past three years increases your risk.