To demonstrate 'good faith' on wage case, seek advice from your attorney.
Let's say your company inadvertently fails to pay the correct amount of overtime to a group of employees. The Fair Labor Standards Act may require you to owe both back pay plus a penalty equal to the amount owed.
But it could get worse. If the court determines that you committed a "willful" violation, you will owe back pay, doubled, for three years instead of two.
But there is a way to avoid those harsh penalties: You won't owe double pay or the extra year of back pay if you can prove you acted in "good faith."
To do that, show that you educated yourself about your obligations and properly investigated the overtime error. The best practice: Promptly contact your attorney when you receive any wage complaint, and then rely on his or her advice.
Recent case: An employer required several employees to attend training sessions and undergo drug testing. The workers requested pay and overtime for the time spent on those activities.
The employer then contacted its...
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