Although it can be awkward for employees to discuss pay difficulties with their employers, doing so early on is the best way to prevent the issue from developing into a lawsuit.

Get guidance on your rights to resolve the issue and file a claim for an unlawful deduction from wages if you are having problems with your pay, experiencing unforeseen deductions, or if you and your employer cannot agree on the amount you should have been paid.


Wage Dispute – What Do You Need to Know About It?

Unless specific, limited exceptions apply, it is illegal for employers to make unauthorized deductions from employees’ compensation.

Most wage disputes are the result of mistakes that, once brought to your employer’s attention, can be easily fixed. In other situations, there might be more serious issues, such as repeated wage non-payment.

If your employer consistently fails to pay you, it may be a sign that they are having financial problems. In such circumstances, you might also be dealing with other employment-related difficulties, such as having your employment rights taken over by an administrator as part of an insolvency procedure or having your job transferred to a new employer in the event that the business is sold.

As you start taking early advice, this will help you in protecting your rights and obtaining maximum entitlement.

Errors Can Happen With Payroll

Even with payroll, mistakes do occur, but it’s critical to act quickly to fix them to prevent additional loss of employee confidence and the possibility of legal action. Depending on whether there was an overpayment or underpayment and whether there were any legal issues involved, different actions will need to be taken to resolve pay disputes.

According to Craig Boelte, CFO of Paycom in Oklahoma City, “When it comes to pay, even small errors can have a detrimental impact on an employee’s trust in their employer.”

Check the numbers and make the necessary corrections, advised Ann Wicks, an attorney with Withersworldwide in San Francisco, if there is a straightforward mathematical mistake or if a wage rise or hours worked are not taken into account. If the problem is more complicated, further research may be required.

She pointed out that several disagreements center on issues like whether an employee put in extra time, worked through lunch, failed to punch in or out, or was asked to work off the clock.

To find out how much time was worked, Wicks advised talking to the employee, the manager, and perhaps some other members of the department or work unit.

The truth might also be illuminated by technology. “Electronic badges, cameras, and equipment logs may reveal when the employee was on site when they logged in or out, and if they were active on the computer or other equipment,” she said. Although it is rare, some managers would ask staff members to work over lunch or after hours and then deny doing so.

Good Communication is Important

According to Jeffrey Brecher, an attorney with Jackson Lewis in Melville, New York, “ensure the employee understands the company appreciates the employee has identified the error and communicate regularly with the employee to identify what is being done and the time frame in which it will be completed.”

In order for those doing the investigation to fully comprehend the complaint, he advised the employee to detail it in writing.

In case the employee complains about wage disputes to the manager, who in turn escalate the matter to HR, who in turn gets in touch with the payroll department, the time within which the person investigating receives the message, there could probably be a misunderstanding of the issue.

Pay Correction

If an underpayment occurred, Wicks added that the employer should instantly ensure that the error was rectified and communicated to the employee. There could need to be a wage increase as a result of this.

“The paystub should also be corrected,” she continued, “to ensure that the employee is provided with the corrected information and that the business records are accurate.”

If an employer utilizes a third-party payroll business that claims that a corrected paystub cannot be given, Wicks advised, “You should question whether that is true and work to get a corrected or supplemental paystub issued.”

Federal law normally allows employers to collect overpayments, according to Bennett. But before taking money out of an employee’s paycheck to make up for an overpayment, businesses frequently need to comply with specific state laws.

Therefore, now that you’re aware of the ways in which you can deal with wage disputes, what are you waiting for? Take the required steps and resolve matters as soon as you can.

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